For many DeLand families, the biggest threat to a lifetime of savings is not a market downturn or a bad investment. It is the cost of long-term nursing home care. With private-pay costs at Florida nursing facilities commonly exceeding $10,000 per month, Medicaid has become an essential resource for covering long-term care. But Medicaid eligibility rules are strict, and without careful planning, a family can be forced to spend down a lifetime of assets before qualifying. At Mara Law, P.A., we help DeLand families plan ahead so that a loved one’s care needs do not have to come at the cost of financial security for a spouse or the next generation.

Why Medicaid Planning Matters

Medicare, despite common misconceptions, does not cover long-term custodial nursing home care beyond a very limited post-hospitalization period. For most families, that leaves two realistic options: paying privately, often at significant cost, or qualifying for Florida Medicaid’s Institutional Care Program (ICP), which covers nursing facility care for those who meet strict income and asset requirements. Proactive Medicaid planning is about legally and appropriately structuring a family’s finances well before a health crisis, so that a loved one can qualify for benefits without unnecessary hardship.

Florida Medicaid Eligibility Rules for Long-Term Care

To qualify for ICP Medicaid, an applicant generally must meet both an income limit and an asset limit, each of which is adjusted periodically by the state and federal government. In broad terms:

• Asset limits are quite low for an individual applicant, currently $2,000 in countable assets, though a healthy spouse who remains in the community can typically keep a much larger protected share of the couple’s combined assets through the Community Spouse Resource Allowance.
• Income limits apply as well, though income above the cap does not necessarily disqualify an applicant, since Florida allows a properly drafted Qualified Income Trust, sometimes called a Miller Trust, to manage excess income.
• A primary residence is automatically treated as an exempt asset while the applicant’s spouse or certain dependent children live there, regardless of its value. For a single applicant relying on an intent to return home, Florida applies a home equity cap to the exemption, which is $752,000 in 2026 and is adjusted periodically.

Because these figures change over time and are applied differently depending on marital status and other circumstances, families should always confirm the current limits with an attorney rather than relying on outdated numbers found online.

The Medicaid Look-Back Period: Why Timing Matters

One of the most important, and most misunderstood, aspects of Medicaid planning is the five-year look-back period. When someone applies for Medicaid long-term care benefits, the state reviews financial records for the preceding five years to identify any transfers made for less than fair value, such as gifting assets to children. Transfers made during this window can result in a penalty period of ineligibility, calculated based on the value transferred and the average private-pay cost of care in Florida. This is why Medicaid planning is far more effective when it begins well in advance of an anticipated need for care, rather than in the midst of a health crisis.

Common Medicaid Planning Strategies

There is no one-size-fits-all approach to Medicaid planning, and the right strategy depends heavily on a family’s specific assets, health situation, and goals. Tools we regularly discuss with DeLand clients include:

• Irrevocable Medicaid asset protection trusts. By transferring assets into a properly structured irrevocable trust more than five years before an anticipated need for care, those assets can generally be protected from being counted toward Medicaid’s asset limit while still benefiting your family.
• The Lady Bird Deed. A Florida Enhanced Life Estate Deed allows a homeowner to retain full control of their property during life, including the ability to sell or refinance it, while automatically passing it to a chosen beneficiary at death. Because the transfer occurs at death rather than during life, a Lady Bird Deed generally does not trigger the five-year look-back period, making it a popular tool in Medicaid planning. You can read more in our earlier article on the Florida Lady Bird Deed for a deeper look at how this tool works.
• Spend-down strategies. In some cases, it makes sense to reduce countable assets by paying down debt, making necessary home repairs, purchasing exempt items, or prepaying funeral and burial expenses.
• Spousal protections. Florida law includes specific allowances, such as the Community Spouse Resource Allowance and certain monthly income allowances, designed to prevent a healthy spouse from being impoverished when their partner requires nursing home care.

What Happens If You Don’t Plan Ahead?

Without proper planning, families are often forced to spend down savings on private-pay care until they qualify for Medicaid, sometimes exhausting resources that could have been protected. Uninformed transfers made in a rush, such as gifting a home to a child shortly before applying, can also trigger a Medicaid penalty period at exactly the moment a family can least afford a gap in coverage. Planning ahead, even with modest resources, generally produces far better outcomes than reacting during a crisis.

When Should You Start Medicaid Planning?

Because of the five-year look-back period, the ideal time to begin Medicaid planning is well before care is actually needed, often as part of a broader estate plan put in place in your 60s or 70s. That said, planning is not an all-or-nothing proposition. Even families facing an immediate or near-term need for care still have legitimate, Medicaid-compliant strategies available, particularly around spousal protections and certain types of asset conversion, so it is worth speaking with an attorney regardless of where you are in the process.

Medicaid Planning and Your Broader Estate Plan

Medicaid planning does not happen in a vacuum. It should work hand in hand with your existing will, trust, powers of attorney, and healthcare directives. A plan that protects your assets for Medicaid purposes but conflicts with your estate plan’s goals can create confusion and unintended results for your family down the road. For example, a Lady Bird Deed used for Medicaid planning must be coordinated with the rest of your estate plan to make sure the named beneficiary aligns with your overall wishes, and an irrevocable trust must be drafted so it does not interfere with other protections you have already put in place, such as a durable power of attorney or healthcare surrogate designation.

For DeLand families, this often means revisiting an estate plan that may not have been updated in years. A plan built decades ago, before a health diagnosis or before Florida’s Medicaid rules were last updated, may no longer reflect either your family’s needs or the current legal landscape. Reviewing your full plan together, rather than treating Medicaid planning as an isolated project, typically produces a far more resilient result.

Do You Need a Medicaid Planning Attorney in DeLand?

Medicaid rules sit at the intersection of state and federal law, are updated regularly, and are applied differently depending on marital status, asset type, and timing. An experienced Medicaid planning attorney can help you:

• Understand the current income and asset limits as they apply to your specific situation
• Evaluate whether a Lady Bird Deed, irrevocable trust, or other tool fits your goals
• Protect a spouse’s financial security while the other spouse qualifies for care
• Avoid transfers that could trigger an unnecessary penalty period
• Coordinate Medicaid planning with your broader estate plan

Frequently Asked Questions

Will I lose my house if I go on Medicaid?

Not necessarily. A primary residence is exempt while a spouse or certain dependents live there, and a single applicant can also protect the home through an intent to return, subject to Florida’s home equity cap. Estate recovery rules after death can affect the outcome, which is one more reason planning tools like the Lady Bird Deed are worth discussing with an attorney.

Can I just give my assets to my children before applying for Medicaid?

Gifting assets without proper planning can trigger the five-year look-back penalty. Any transfer strategy should be structured well in advance and reviewed by an attorney familiar with current Medicaid rules.

What is the difference between Medicaid planning and estate planning?

Estate planning focuses on how your assets are managed and distributed during life and after death. Medicaid planning specifically addresses how to legally qualify for long-term care benefits while preserving as much of your assets as possible. The two often overlap and work best when coordinated together.

Talk to Mara Law, P.A. About Medicaid Planning in DeLand. The earlier you begin planning, the more options you have to protect your family’s assets. Contact Mara Law, P.A. today to schedule a consultation with a Medicaid planning attorney serving DeLand and the surrounding communities.