At Clarke Law, we specialize in helping Florida residents qualify for Medicaid while preserving as many assets as possible.

If you are applying for Medicaid long-term care or Medicaid waiver (care in a nursing home, ALF, or the provision of aides to your home), be aware that there are limits to the amount and type of assets that you may own. If you exceed those limits, you will need to spend the assets down or restructure them.

Florida Medicaid’s 2025 Asset Limits for Long-Term Care :

· Asset Limit for a Single Applicant: $2,000 in countable assets

· Asset Limit for a Married Couple (both applying): $3,000 in countable assets

· Asset Limit for a Community Spouse (non-applicant spouse): $154,140 (in protected resources)

To qualify, applicants must ensure their assets fall within these limits. However, Medicaid exempts certain assets, allowing individuals to retain some property and financial resources while still qualifying for benefits (see below). A summary of the relevant financial eligibility criteria for Florida Medicaid can be found here: Florida Medicaid Fact Sheet

What Assets Does Florida Medicaid Exempt?

Certain assets are not counted toward the Medicaid asset limit, meaning you can keep them while still qualifying for benefits. These exempt assets include:

Primary Residence: If the applicant or a spouse lives in the home, it is exempt (up to an equity value of $713,000 in 2024). If the applicant is single and moves into a nursing home, Medicaid may place a lien on the home unless proper planning is done.
One Vehicle: Any vehicle is exempt, regardless of its value. A second vehicle may also be exempt if it is over seven years old but under twenty-five years old.
Personal Belongings & Household Goods: Clothing, furniture, appliances, and other household items are exempt.
Prepaid Funeral and Burial Plans: Irrevocable funeral contracts and burial spaces for immediate family members are exempt.
Term Life Insurance: Since these policies have no cash value, they are not considered assets.

How Florida Medicaid Treats Common Assets

Beyond exempt assets, Medicaid considers most other financial resources as countable assets.

1. Retirement Accounts (IRAs, 401(k)s, Pensions): If the applicant is not withdrawing required minimum distributions (RMDs), the full value of the account is counted as an asset.

If RMDs are being taken, Medicaid exempts the balance and counts only the monthly distributions as income. For spouses, the non-applicant spouse’s retirement accounts are fully exempt.

2. Stocks, Bonds, and Investment Accounts: Stocks, mutual funds, and brokerage accounts are countable assets, even if they generate income.

Dividends or interest from these investments count as income, but the assets themselves still count toward Medicaid’s asset limit.

3. Cash and Bank Accounts: Checking, savings, and money market accounts are countable assets.

4. Jointly Owned Assets: Medicaid typically assumes that the applicant owns 100% of any jointly held assets unless evidence shows otherwise.

If an asset is jointly owned with a non-spouse, the applicant may need to prove they do not have full control over the funds.

5. Gifts and Transfers (Look-Back Period): Medicaid has a five-year look-back rule, meaning that any gifts or transfers for less than fair market value within five years of applying could result in a penalty period of ineligibility.

How Can You Protect Your Assets and Qualify for Medicaid?

Medicaid planning strategies help individuals legally protect assets while ensuring they qualify for long-term care benefits. Some common techniques include:

Spending Down Assets: Paying off debts, home improvements, or purchasing exempt assets (such as a vehicle or funeral plan).
Medicaid Asset Protection Trusts: These irrevocable trusts remove assets from an applicant’s ownership while preserving them for heirs.
Caregiver Agreements: Paying a family member for care services in a way that Medicaid recognizes as a valid expense.

Need Help with Medicaid Planning? Clarke Law Can Assist! At Clarke Law, we specialize in Medicaid planning strategies that ensure you or your loved one qualifies for benefits without unnecessary financial loss.

Counting Assets for Medicaid Long-Term Care