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Protect Your Florida Home on Medicaid: Lady Bird Deeds Explained (2025 Update)
- atCause Law Office
- 1 hour ago
- 3 min read
If you're a Florida resident on Medicaid with a paid-off house, you might worry about losing it to estate recovery after you pass. The good news? You can still get a Lady Bird deed—and you absolutely should. This simple tool keeps your home out of probate, avoids Medicaid claims, and passes it directly to your heirs.
In this guide, we'll break down how Lady Bird deeds work for Medicaid recipients, Florida's generous homestead exemptions, and why skipping probate saves your family thousands (and years of headaches). Based on real attorney insights, this is your 2025 roadmap to securing your legacy.
Can You Get a Lady Bird Deed If You're Already on Medicaid?
Yes—100%. Being on Medicaid doesn't block you from using a Lady Bird deed (also called an enhanced life estate deed). In fact, it's one of the smartest moves you can make.
Why It Matters for Medicaid Recipients
After you pass, Medicaid can file a claim against your probate estate to recover long-term care costs. Your home? It's often the biggest target.
A Lady Bird deed:
Keeps the property out of your probate estate.
Lets it transfer directly to beneficiaries upon death.
Avoids court delays, fees, and Medicaid recovery attempts on the home.
Pro Tip: Real estate is usually your most valuable asset. A paid-off Florida home? Protect it fiercely.
How Lady Bird Deeds Avoid Probate Nightmares
Probate = Court process for assets without beneficiaries or trusts. It’s expensive, slow, and public.
Real-Life Horror Story (That we've really had)
One family probated a homestead where the original owner died in the 1940s. The home sat in limbo for decades. Multiple generations lived there—then died—without title transfer. Result? Layered probates, missing heirs, and legal chaos.
Even 5–10 years of delay creates:
Probate on probate when heirs pass before inheriting.
Heirs unable to sell or refinance.
Family fights over unclear ownership.
Florida Homestead: The Most Protected Asset in America
Florida’s homestead exemption is legendary. For Medicaid eligibility:
Single person: Up to $731,000 in home equity is excluded.
Equity = Fair market value − mortgage balance.
You can live in a nursing home or ALF and still keep the exemption—if you show intent to return.
Example: Your home is worth $800,000 with a $100,000 mortgage? Equity = $700,000 → Fully protected (under $731K limit).
Key Rules
Must be your primary residence.
Intent to return = Doctor’s note, mail forwarding, or personal statement.
Applies even if you're not living there temporarily.
Who Should Use a Lady Bird Deed?
Step-by-Step: How to Set Up a Lady Bird Deed in Florida
Consult an Elder Law or Estate Planning Attorney (Avoid DIY kits—Medicaid rules are tricky.)
Draft the Deed You retain full lifetime control (sell, rent, or revoke anytime).
Name Beneficiaries Kids, grandkids, or anyone—no spousal restrictions.
File with County Clerk Done. No probate needed.
Bonus: Add payable-on-death (POD) beneficiaries to bank accounts to avoid probate there too.
Common Myths Debunked
Final Thoughts: Secure Your Florida Legacy Today
You worked hard to pay off that house. Don’t let probate or Medicaid recovery steal it from your family. A Lady Bird deed works even on Medicaid.
Next Step: Contact a Florida elder law attorney today. Many offer free consultations.
Recommended: atCause Law Office – The Non-Stuffy Attorneys (Florida Medicaid & Probate attorneys)
November 2025 Update | Not legal advice—consult an attorney for your situation.
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