One of the most common questions faced by elder law attorneys guiding their clients and families is whether an applicant for long term care benefits under the medicaid program in Florida will cause the applicant or well spouse to have to either sell or lose their home. 

In Florida, an applicant’s primary residence is known as a “homestead.”  An applicant and spouse generally do not have to sell or cause a loss of the homestead by merely applying for the long term care benefits under the medicaid program!

 In Florida, an applicant can not have since November 1, 2007 more than $500,000 of equity in their homestead to qualify for long term care benefits.  However, the homestead is protected from creditor’s claims during the applicant’s and spouse’s lifetimes for an unlimited amount ( there is only a size limitation; not a monetary one for creditor protection).  This protection from creditors includes even the state of Florida!  If an applicant and spouse leave their homestead to anyone deemed an “heir” (for example children and blood relatives are “heirs”) then even those persons, too, get the applicant’s and spouse’s homestead free from claims of creditors.  This means the state CAN’T take your home if you apply for and obtain long term care benefits.

Although the state has estate recovery against certain assets after an applicant for long term care benefits under the state’s medicaid program dies, such rights do not extend to the home!

If you or a loved one is even considering applying for long term care benefits, do not fret or even lose sleep over losing your home.  This is a common misconception.