How to Protect Your Assets from Nursing Home Costs in Florida

Long-term care helps provide much-needed support for older adults in Clearwater, but the costs can create significant financial burdens for them and their families. According to the Florida Health Care Association, a private room in a nursing home averages over $100,000 per year.

Without proper planning, paying for long-term care can quickly deplete your life savings.

Fortunately, legal strategies are available that can help offset expenses while ensuring you receive the care you need. Our Clearwater elder law attorney has over 40 years of experience helping local clients in these cases. He explains how Medicaid eligibility can protect your assets while covering the costs of nursing home care.

Understanding Nursing Home Costs and Medicaid Eligibility In Clearwater

Nursing homes are expensive, and many older adults turn to the Florida Medicaid program for assistance. Medicaid is a state-run federal program that assists in paying medical costs, including nursing homes and other types of long-term care. However, there are strict asset and income limits to qualify for Medicaid in 2025:

• No more than $2,000 in countable assets if single or $3,000 if married and both spouses require such care;
• Individual monthly income below $2,829

Certain assets like your primary home, car, and personal belongings do not count towards Medicaid eligibility. However, even with exemptions, many older adults must ‘spend down’ their savings or avail themselves of other strategies in order to meet Medicaid’s financial thresholds for eligibility.

This is where Medicaid planning comes in. Without it, you may have to deplete assets you worked hard to earn over the years before being eligible for assistance.

Legal Strategies to Protect Your Assets from High Nursing Home Costs In Clearwater

Paying for a nursing home can quickly wipe out your life savings. Fortunately, Medicaid offsets long-term care expenses but requires proper planning. Consider these strategies:

• Establish an Irrevocable Medicaid Asset Protection Trust (MAPT): Transferring your assets to a trust at least five years before applying for Medicaid can protect them from being counted towards eligibility.
• Use a life estate for your home: This allows you to retain ownership of your home, ensuring it passes to your heirs.
• Converting countable assets into exempt assets: Purchasing exempt items like a prepaid funeral plan, home improvements, or a new vehicle can help reduce assets impacting Medicaid eligibility.
• Medicaid-compliant annuities: These can convert excess assets into a steady income stream, helping meet Medicaid limits while preserving wealth for a spouse.

Contact Our Clearwater Elder Law Attorney And Start Planning For The Future Today

Without a plan, nursing home costs in Clearwater can quickly drain your savings. Fortunately, it is never too late to protect your assets, even if you or a loved one already needs long-term care.

William Rambaum has over 40 years of experience serving residents of our community and holds the distinction of being Board-certified by the Florida Bar and the National Elder Law Foundation. We can help safeguard your financial future while ensuring you get the quality care you need. Call our office or contact us online today to schedule a consultation with our Clearwater elder law attorney.

Sources:

fhca.org/media_center/long_term_health_care_facts

ahca.myflorida.com/medicaid/statewide-medicaid-managed-care