Under the pre February 8, 2006 Medicaid rules, your homestead was an exempt asset with an unlimited value. Under Florida law a "homestead" is defined as a half acre in a municipality and up to160 contiguous acres in an unincorporated area. Under the new law, anywhere between $500,000 and $750,000 of equity in a homestead is exempt. The rest of the equity in a homestead is a counted as an asset in the asset test. But what if you move out of your homestead and into a nursing home? Will your house remain exempt? In short, the answer is maybe. Under Florida law, your house can remain your homestead, even if you do not reside in it, if you have the intention of returning to it. Thus, a nursing home resident should always state that they intend to return to their home no matter what their condition. Many people have lost their homesteads after being misinformed and selling their home. In fact under the Florida Probate Code, a homestead can usually be passed to a spouse and/or descendants free from creditor's claims. Remember, that if you rent the house, the lease should make it clear that you intend to return to the home. If your lease indicates no intention to return to the home, this can be used as evidence that you abandoned your homestead. Additionally, please remember that your homestead is probably one of your biggest assets and thus probably your biggest exempt asset!

If you are a concerned relative or friend of an elderly person and need help with Estate Planning, Elder Law, or Medicaid and are in the Jacksonville, Orange Park, St. Augustine, Fernandina Beach or in the areas around Duval, St. Johns, Nassau, and Clay counties, we'd like to hear from you.

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