Can Medicaid Take Your House After a Parent's Death? Insights on Joint Tenancy with Survivorship in Florida

If you're a joint tenant with rights of survivorship on a property with your parent, and they're receiving government benefits like SSDI or Medicaid, you might worry about what happens to the house after they pass away. A common question is: Can the government come after the house? In this post, we'll break down the key differences between SSI and SSDI, explain why Social Security typically isn't a concern for property liens, and dive into how Medicaid recovery works—especially for homestead properties in Florida. This information is based on common scenarios involving elder law and estate planning.

Understanding SSI vs. SSDI: Which Benefits Is Your Parent Receiving?

There are different forms of payments from the Social Security Administration, and it's important to clarify which one applies to your situation.

• SSI (Social Security Income): This is a type of payment for people who've worked at a job, paid into Social Security, and reached retirement age. The full retirement age is technically 67, but you can start collecting as early as around age 62—though you'll receive less benefits if you take it early.

• SSDI (Social Security Disability Insurance): This doesn't have the same age restrictions as SSI. It's provided if you've worked at a job where you paid into Social Security and meet the government's requirements for what counts as a disability. People can start collecting SSDI at much earlier ages if they can't work due to an underlying disability.

If your parent has been on benefits "all their life," it's likely SSDI rather than SSI, as SSDI can begin earlier without retirement age limits.

The good news? The Social Security Administration doesn't typically put liens on real property or come after a house. However, many people on SSDI are also on another government benefit: Medicaid. This is where potential recovery concerns often arise.

Medicaid and Recovery: What Happens After Death?

Medicaid is frequently used alongside SSDI to cover healthcare costs, such as in-home care, assisted living facilities (ALFs), or long-term care in nursing homes. Medicaid steps in when someone meets the level of indigency—they don't have enough gross income or assets (or have arranged them to be under the limits) to pay for these expensive services themselves.

• Why Medicaid is needed: Nursing home care alone averages about $10,400 a month in Florida. Depending on age and life expectancy, these costs can add up quickly, making Medicaid essential for many with disabilities.

After the recipient passes away, Medicaid may seek recovery for the amounts paid out. This is to recoup the costs of care provided. But recovery depends heavily on the type of property involved.

Florida's Homestead Protections: A Key Safeguard

In Florida, homestead property enjoys some of the strongest protections in the U.S.—it's often the most protected asset, making it hard for creditors, including government agencies like Medicaid, to access it.

• Homestead as a non-countable asset: Owning a homestead property doesn't count against you for Medicaid eligibility. Medicaid typically cannot go after the homestead after death, especially with proper planning.

• Proper planning options:

  • Lady Bird Deed: This lists a beneficiary, allowing the property to pass directly outside of probate, so it's not part of the estate and can't be reclaimed.

  • Trust: If the property is in a trust, it passes to individuals through the trust, avoiding Medicaid clawback.

  • Joint Tenants with Rights of Survivorship: If you and your parent are both living in the home (making it both your homesteads), and it's titled as joint tenants with rights of survivorship, the property should pass to you safely upon their death. Medicaid won't be able to put a lien on it or come after it.

However, other debts like mortgages must still be handled—they need to be repaid, assumed, or refinanced. Contractors who did unpaid work on the home could also place a lien.

Non-Homestead Property: Different Rules Apply

If the property isn't a homestead (e.g., it's a secondary property), the rules change:

• It's considered a countable asset for Medicaid eligibility.

• If owned individually or jointly, the owner's portion counts toward their asset limits.

• Medicaid could potentially recover from non-homestead property after death.

In most cases, if the house in question is your parent's (and possibly your) primary residence, it qualifies as homestead and should be protected—assuming it's in Florida.

Final Thoughts: Protecting Your Family's Home

Homestead protections in Florida allow properties to often pass to children or stay in the family without fear of Medicaid reclamation, provided the right steps are taken. If you're dealing with joint tenancy with survivorship and worried about SSDI or Medicaid impacts, rest assured that for homesteads, you're likely safe. That said, every situation is unique, and more details would be needed for a full assessment.

If you have questions about Medicaid in Florida, deeds, estate law, or elder law in general, reach out to atCause Law Office—the non-stuffy attorneys. Schedule a Free consultation today.