Planning for long-term care in Florida can feel intimidating—especially when you want to preserve your family’s assets while ensuring you or a loved one can afford the right care. Whether you are preparing for the future or facing an immediate health crisis, the Medicaid system in Florida comes with its own set of rules and challenges. At Dorcey Law Firm, PLC, we’re committed to helping families in Fort Myers and throughout Florida make sense of Medicaid planning, avoid common mistakes, and safeguard their legacies with compassion and clarity. This comprehensive guide answers the most common Medicaid FAQs in Florida, breaks down the specific rules for 2024, and outlines practical strategies that make a real difference for families like yours.
Who Needs Medicaid Planning in Florida & How Does It Work?
Medicaid planning in Florida is essential for anyone facing the possibility of long-term care or nursing home costs that private insurance and Medicare simply won’t cover. If you own a home, have retirement savings, or want to maintain a financial legacy for your family, Medicaid’s strict income and asset limits require advance planning. This process involves more than filling out forms—it means coordinating your finances, property, and legal documents to both qualify for benefits and protect what matters most.
Those who benefit most from proactive Medicaid planning are often seniors, adults with disabilities, and families supporting aging loved ones. Many discover the realities of Medicaid only after a serious medical event requires prompt placement in a care facility. Without planning, the default path can mean spending down savings to near zero. With the right legal strategies on your side, however, you can preserve resources, maintain your quality of life, and pass wealth on to the next generation.
At Dorcey Law Firm, PLC, our approach starts with a clear, jargon-free explanation of your options. We review your unique circumstances, clarify Florida’s changing Medicaid policies, and help you make confident, informed decisions—eliminating confusion and reducing family stress from day one. Our focus is on creating long-term security, not just temporary eligibility.
What Are the 2024 Medicaid Income & Asset Limits in Florida?
Understanding income and asset limits is central to Medicaid planning in Florida. As of 2024, a single applicant’s gross monthly income must not exceed $2,829. For married couples applying together, the monthly income limit is $5,658 combined. If your income exceeds these thresholds, a Qualified Income Trust—discussed later—may resolve the issue without disqualifying you.
In addition to income, Medicaid applicants must also meet strict asset limits. A single applicant may have no more than $2,000 in countable assets. For married couples applying at the same time, the asset limit is $3,000. For couples where only one spouse applies, the non-applicant (community spouse) may keep up to $154,140 of the couple’s assets under Florida’s current Community Spouse Resource Allowance (CSRA). Understanding these numbers is critical, but knowing what counts—and what does not—can make all the difference.
Florida excludes certain assets—such as the primary residence, within the allowed equity limit, an irrevocable funeral contract, and one vehicle—from countable resources. However, joint accounts, retirement funds, and property other than your homestead may still count. At Dorcey Law Firm, PLC, we conduct detailed reviews to help families structure finances so that they remain eligible for Medicaid without unnecessary loss.
How Does the Medicaid Look-Back Period in Florida Impact Eligibility?
Florida enforces a five-year look-back period on all Medicaid applications for long-term care, including nursing home and home health services. Any gifts, transfers, or sales for less than fair market value made within 60 months of applying can lead to penalties. These penalties result in a period of ineligibility, calculated by dividing the transferred value by Florida’s current penalty divisor—which matches the average monthly cost of nursing care in the state.
Common misconceptions can lead to mistakes. For example, selling a family home to a relative at a bargain price, gifting money to grandchildren, or transferring a car title for free can each cause unintentional problems if done within the look-back window. Even seemingly innocent actions are presumed to be for Medicaid qualification unless proven otherwise. The consequences can be serious: denied applications and delays in accessing care.
To avoid these pitfalls, reviewing the previous five years of financial transactions is a core step in every plan we develop at Dorcey Law Firm, PLC. We guide families to document all gifts, sales, and asset transfers with proper evidence and consider alternatives—such as irrevocable trusts or approved spend-downs—to ensure compliance with Florida’s rules while protecting family resources.
Can I Keep My Home & Still Get Medicaid in Florida?
Your home is often your largest asset and biggest concern when considering Medicaid. Florida’s Medicaid law allows you to keep your primary home and still qualify for benefits, as long as your equity interest does not exceed $713,000 in 2024. This exemption applies to homes where the applicant or their spouse resides, and ownership must be documented properly.
If you’re married, your non-applicant spouse may continue living in the family home indefinitely, and Medicaid cannot force its sale while they’re alive. After the Medicaid recipient’s passing, however, the state may seek recovery from the estate—including the home—to recoup care costs. Strategic planning can minimize this risk. Options like life estate deeds, irrevocable Medicaid protection trusts, or enhanced beneficiary designations may help transfer the property free of Medicaid’s claim—if completed outside the look-back period.
We frequently advise clients at Dorcey Law Firm, PLC on Florida’s unique homestead protections, ownership titling, and estate planning tools. By reviewing your deed, equity, and long-term intentions, we develop a plan that supports both eligibility and your family’s peace of mind.
What Types of Income & Assets Count for Medicaid in Florida?
Medicaid regulations in Florida carefully define both income and assets. For income, Medicaid considers regular sources like wages, Social Security benefits, pensions, rental income, annuity distributions, and interest from investments, all calculated before taxes. Even consistent monetary support from family or friends may be counted as income when determining eligibility. Understanding these distinctions helps you avoid underreporting and potential penalties.
As for assets, Medicaid separates them into countable and exempt categories. Common countable assets include:
- Savings and checking accounts
- Stocks, bonds, and CDs
- IRAs and most retirement accounts
- Secondary vehicles
- Real property other than your Florida homestead
- Life insurance with a cash value exceeding $2,500
Typical exempt assets are:
- Primary home (within the equity limit)
- One vehicle of unlimited value
- Personal belongings and home furnishings
- Irrevocable prepaid funeral and burial contracts
- Certain annuities, if compliant with Florida rules
However, joint accounts, recent title changes, and co-ownership can affect how assets are classified. Our team at Dorcey Law Firm, PLC reviews each asset, clarifies any grey areas, and recommends appropriate steps to ensure reporting meets all Florida Medicaid policies.
Retirement assets—especially IRAs—are a frequent source of confusion. If your IRA is in payout status and distributions follow IRS guidelines, it might not count toward your total assets. If not, the account’s full balance could be included. That’s why thorough review and documentation are critical to protect your eligibility.
How Does the Medicaid Spend Down Work in Florida & What Strategies Are Legal?
Medicaid spend down means legally reducing your countable assets to qualify for coverage. In Florida, you can use resources in several allowed ways—without triggering a penalty or losing everything to care costs. Legitimate spend-down strategies include:
- Paying off debts (credit cards, home mortgages, medical bills)
- Making home improvements (accessibility modifications, new appliances, roof repairs)
- Purchasing personal items (furniture, clothing, hearing aids)
- Prepaying for irrevocable funeral or burial contracts
- Paying for approved care-related expenses, such as private caregivers
Personal care agreements with family members can also be utilized—if the agreement is formal, at fair market rates, and compliant with state rules before any payments begin. Additionally, irrevocable trusts set up well in advance can legally move certain resources out of your countable asset pool, but the timing is crucial due to the five-year look-back period.
Every step in the spend-down must be carefully documented, with receipts and contracts ready for review during the Medicaid application process. At Dorcey Law Firm, PLC, we facilitate every stage—suggesting the right sequence, ensuring receipts meet state standards, and preparing reports so families avoid mistakes that might delay eligibility or cause penalties down the road.
When Does a Florida Medicaid Applicant Need a Qualified Income Trust (QIT)?
If your gross monthly income exceeds the Florida Medicaid cap ($2,829 in 2024 for an individual), you need a Qualified Income Trust, also called a Miller Trust. This special type of trust allows you to deposit income above the threshold so you remain eligible for Medicaid. Only the Medicaid applicant’s income can be placed into the QIT, and strict rules govern the use and distribution of these funds.
Establishing the trust is only the first step. The QIT must be irrevocable, and the applicant must be the sole beneficiary. Each month, excess income is deposited into the trust and then applied toward the individual’s cost of care, with every dollar accounted for. Payroll deposits, pensions, and Social Security are typical sources of income for QIT funding. Improper deposits, missed payments, or using QIT funds in unauthorized ways can cause applications to be denied or result in benefits being cut off suddenly.
Our Trust Funding Department at Dorcey Law Firm, PLC walks families through QIT setup, ongoing maintenance, and compliance checks. By handling paperwork, funding schedules, and state reporting, we help you avoid unnecessary denials and keep your Medicaid benefits safe for the long term.
Which Long-Term Care Services & Expenses Does Florida Medicaid Cover?
Florida’s Medicaid program offers a comprehensive range of long-term care benefits, but coverage has both strengths and limits. If approved, Medicaid will pay for care in skilled nursing facilities, certain assisted living communities, memory care programs, and—increasingly—home or community-based services through waiver programs.
Covered services often include:
- Room & board at participating care facilities
- Skilled nursing & therapy services
- Prescription medications and medical equipment
- Personal care, daily living assistance, and case management
- Meal preparation and some housekeeping help
There are, however, notable exclusions. Medicaid generally does not cover private rooms (unless medically necessary), personal entertainment or non-medical expenses, and upgraded amenities not medically required. Most applicants are required to contribute the bulk of their monthly income, minus certain allowances (such as a spousal needs allowance or personal needs allowance), with Medicaid funding the gap.
We at Dorcey Law Firm, PLC clarify which benefits can be used, how to maximize coverage, and what costs you may still face out of pocket. Our team helps you select the right care setting, apply for home-based waivers where possible, and appeal questionable denials so you receive the care you need with minimal surprises.
How Does Medicaid Planning Change When Spouses or Family Members Are Involved?
Medicaid planning becomes more complex and more crucial when a spouse or dependent is involved. Florida’s spousal impoverishment rules allow the non-applicant (community spouse) to keep a significant portion of marital assets—currently up to $154,140 in countable resources. The community spouse also qualifies for an income allowance to maintain financial stability, safeguarding their ability to pay bills and live comfortably.
Complex family relationships—such as blended families, adult children living at home, or dependents with special needs—require careful review of beneficiary designations and property ownership. Failure to update documents or structure assets properly can lead to benefits being denied or assets unintentionally passing out of the family. Medicaid rules look closely at joint accounts, naming conventions on property, and regular gifts to relatives.
At Dorcey Law Firm, PLC, we examine every family’s unique situation, considering both immediate care needs and future estate plans. We tailor solutions for both applicant and non-applicant spouses, review legal documents for Medicaid readiness, and help you make informed choices to protect everyone’s interests—today and down the road.
What Are the Most Common Medicaid Planning Mistakes in Florida & How Can They Be Avoided?
Unfortunately, simple errors can lead to lengthy delays or even denials of Medicaid benefits. Some of the most frequent planning mistakes include:
- Making gifts or transfers during the five-year look-back period
- Misclassifying assets as exempt without documentation
- Commingling funds or assets in joint accounts
- Filing applications with incomplete or inconsistent supporting documents
- Ignoring the need to update powers of attorney or beneficiary designations for Florida law
Attempting a DIY Medicaid application may seem cost-effective, but even minor omissions or misunderstandings now meet greater scrutiny and often result in denials. In urgent care situations, families sometimes rush to transfer property or liquidate accounts, triggering unintentional penalties under state rules.
The best way to avoid these pitfalls is with proactive, Florida-specific legal guidance. Our approach at Dorcey Law Firm, PLC uses detailed reviews, step-by-step asset tracking, and regular compliance checks—all to ensure your application is airtight. We educate families about red flags, deadlines, and proper documentation, reducing anxiety and putting your eligibility on solid footing from the start.
We also believe in continuous learning. Medicaid is a dynamic program, with policies and thresholds shifting frequently. Ongoing support means families can adapt quickly, avoiding costly surprises as laws evolve or as your circumstances change.
How Do Ongoing Planning Programs at Dorcey Law Firm, PLC Ensure Peace of Mind?
Medicaid & estate planning are not “one and done” events. As your life changes and Florida’s rules evolve, old documents can become outdated, and eligibility may be at risk. That’s why we developed our proprietary Auto-Pilot Planning Program, which includes scheduled annual reviews, asset audits, compliance check-ins, and plan updates—all with the goal of keeping your estate and Medicaid planning responsive to your needs.
With our full-time Trust Funding Department, we don’t just draft legal documents and walk away. We actively oversee the funding of trusts, regular updates for beneficiary changes, compliance with shifting Medicaid policies, and strategies for ongoing asset protection. This ensures that every detail is handled—before, during, and after you qualify for Medicaid—giving families long-term peace of mind instead of a short-term fix.
We are proud to maintain strong ties to Fort Myers families and to remain accessible when you have questions or need changes. Our clients stay informed, confident, and in control—knowing their Medicaid and estate plans are monitored by a team that cares about their futures.
What Are the Next Steps for Qualifying for Medicaid in Florida Without Risking Your Assets?
Getting started with Medicaid planning in Florida may seem overwhelming, but acting early gives you the most options. Begin by gathering five years of bank records, proof of assets, recent deeds, and documentation of any gifts or sales. This organized information sets the stage for a thorough review—and a clear, strategic plan customized to your needs.
If you are in a time-sensitive situation, document everything before making decisions about asset transfers or care placements. Avoid last-minute gifts or title changes; seek legal review to ensure your next steps are risk-free before filing any Medicaid application. At Dorcey Law Firm, PLC, our client-centered team stands ready to walk you through every facet of the process—from initial review to application submission and follow-up support.
We invite you to take advantage of our complimentary consultation—it’s a no-obligation way to get honest answers, practical advice, and specific planning steps for your family’s circumstances. We look forward to being your trusted partner as you navigate Medicaid planning in Florida with confidence.
To schedule a meeting with our team and start building your Medicaid strategy, call (239) 309-2870.