Medicaid estate recovery is one of the least understood—and most feared—parts of long-term care planning. Families often believe Medicaid will “take the house” after a loved one dies. That fear is understandable, but it’s also incomplete. In Florida, estate recovery is real, but it is limited, rule-bound, and often avoidable with proper planning.
This guide explains how Florida’s Medicaid Estate Recovery Program (MERP) works, what assets are actually at risk, what heirs can expect after death, and how families can protect property proactively—without violating Medicaid rules.
What Is Medicaid Estate Recovery?
Federal law requires states to seek reimbursement for certain Medicaid benefits paid on behalf of recipients aged 55 or older, primarily for:
- Nursing home care
- Assisted living services
- Home- and community-based long-term care services
Florida implements this requirement through the Medicaid Estate Recovery Program (MERP).
The key point:
Medicaid does not recover assets during life. Recovery happens after death, and only under specific conditions.
How Florida’s MERP Program Works
Florida’s MERP seeks repayment only from the probate estate of the deceased Medicaid recipient.
This matters enormously.
In Florida:
- MERP does not recover from non-probate assets
- There is no automatic lien placed on property during life (with limited exceptions)
- The state must follow probate procedures like any other creditor
If an asset does not pass through probate, it is generally outside MERP’s reach.
What Assets Are Subject to Estate Recovery?
Florida limits estate recovery more narrowly than some states.
Typically subject to recovery:
- Assets titled solely in the recipient’s name
- Property passing through probate
- Bank accounts without beneficiaries
- Individually owned real estate subject to probate
Typically not subject to recovery:
- Assets held in a properly structured trust
- Jointly owned property with right of survivorship
- Payable-on-death or transfer-on-death accounts
- Life insurance with named beneficiaries
- Property passing directly to a surviving spouse
This probate-only rule is the foundation of effective planning.
Homestead Property and Medicaid Recovery
Florida homestead law creates both protection and confusion.
Important distinctions:
- The home is exempt for Medicaid eligibility while the recipient is alive
- The home may still be subject to estate recovery after death
- MERP recovery applies only if the home passes through probate
If a Medicaid recipient dies owning a homestead in their individual name, and it goes through probate, MERP may assert a claim.
However:
- A surviving spouse blocks recovery
- Minor or disabled children block recovery
- Proper titling or trust planning can avoid probate entirely
Homestead is powerful—but not automatic protection.
Liens: What Florida Does (and Does Not) Do
Unlike some states, Florida generally:
- Does not place pre-death Medicaid liens on homestead property
- Pursues recovery as a creditor after death
- Must wait for probate to be opened
This gives families time and procedural protections—but only if they understand the process.
Hardship Waivers: When Recovery Can Be Reduced or Eliminated
Florida allows heirs to apply for hardship waivers in limited circumstances.
Examples may include:
- An heir who lived in the home and would become homeless
- A family farm or business that would be lost
- Other compelling equity-based hardships
Waivers are not automatic. They require:
- Timely application
- Documentation
- Legal support in many cases
Relying on hardship waivers instead of planning is risky.
Recovery Is Limited to Probate Estates Only
This point cannot be overstated.
Florida does not pursue expanded estate recovery. That means:
- MERP cannot reach assets that bypass probate
- Proper estate planning can significantly limit or eliminate recovery
- Planning must be done before death—post-death fixes are limited
Families who assume “nothing can be done” are usually wrong.
Protecting Assets Proactively (and Legally)
Effective Medicaid planning focuses on structure, not concealment.
Common strategies include:
- Revocable trusts (for probate avoidance, not Medicaid eligibility)
- Enhanced life estate deeds (Lady Bird deeds)
- Proper beneficiary designations
- Joint ownership strategies (used carefully)
- Coordinated estate and Medicaid planning
Life Estate Strategies
Enhanced life estate deeds are especially common in Florida because they:
- Avoid probate
- Preserve control during life
- Allow the property to pass outside the estate
- Often prevent MERP recovery on the home
Not all life estates are equal—execution matters.
What Heirs Should Expect After Death
After a Medicaid recipient dies:
- The state may send a Notice of Intent to Recover
- The personal representative must respond
- MERP asserts a claim if probate assets exist
- Claims can be evaluated, negotiated, or challenged
Do not ignore notices—and do not assume the claim is valid as stated. Errors happen.
Common Family Scenario
A Florida resident receives Medicaid long-term care. The home is left solely in their name. After death, probate is opened, and MERP files a claim against the house.
With a Lady Bird deed or trust planning, the home could have passed directly to heirs—outside recovery.
Frequently Asked Questions
Does Medicaid always take the house in Florida?
No. Recovery is limited and often avoidable.
Is estate recovery automatic?
No. It applies only if probate assets exist and no exemptions apply.
Can recovery be challenged?
Yes. Claims can be reviewed, reduced, or denied.
Is planning legal?
Yes—if done correctly and in advance.
Call to Action
Medicaid estate recovery in Florida is not a myth—but it is not inevitable. Families who understand how MERP works, and who plan proactively, can often protect homes and other assets legally. If you or a loved one has received long-term care benefits, consult a Florida estate planning or elder law attorney before assumptions turn into losses. The difference between fear and control is informed planning.
