According to the Urban Institute, almost 82% of seniors in Florida are homeowners. The Urban Institute also states that about 75% of seniors in Minnesota own their own homes. Property ownership can be highly beneficial as seniors approach their twilight years, providing reliable shelter and reduced living costs once they pay off their homes. However, property ownership can become more problematic once seniors need to leave their homes and enter assisted-living facilities. Nursing home costs can be much higher than aging in place, and seniors may wonder how to manage their homes effectively while qualifying for Medicaid and other sources of financial support. Seniors and their families do not have to navigate these complexities alone, and elder law attorneys in Florida or Minnesota may be able to help. To learn more about the intersection of property ownership and nursing home costs, consider contacting Roulet Law Firm, P.A. Call (941) 909-4644 in Florida or (763) 420-5087 to keep this conversation going.
Aging in Place Is an Affordable Alternative to Nursing Homes
First, seniors should know that aging in place is almost always a more affordable alternative to nursing home care. Property ownership is extremely valuable in this scenario, since seniors who own their own homes can make the necessary renovations and improvements to age in place for the foreseeable future. Although these improvements may represent major investments, these expenses are inevitably lower than ongoing nursing home costs. If at all possible, seniors should explore the possibility of aging in place rather than entering a long-term care facility.
Various federal and state resources could help seniors achieve this goal. The government also benefits from the lower cost of aging in place, and it runs various programs to assist with this process. Aspects of Medicare and Medicaid are specifically geared toward aging in place. Veterans Affairs (VA) healthcare also provides considerable financial and logistical support for veterans who wish to age in place. To learn more about state and county resources for seniors aging in place, consider speaking with an elder law attorney at Roulet Law Firm, P.A.
Property Ownership Is Often Exempt for Medicaid Eligibility
Property ownership may be completely exempt from Medicaid eligibility calculations. In both Florida and Minnesota, the Medicaid home equity limit is well over $700,000 in 2025. This limit continues to increase each year based on the rate of inflation. As long as the primary residence of the applicant is worth less than the home equity limit, they may still qualify for Medicaid (as long as they meet all of the other requirements).
That being said, property ownership is generally not an issue if at least one spouse continues to live in the family home. For example, one spouse might be diagnosed with dementia or another debilitating illness, forcing them to enter a nursing home. The other spouse (called the “community spouse”) might continue to age in place in the primary residence. In this situation, the property would be completely exempt from Medicaid eligibility calculations – regardless of its value.
Florida Has a Homestead Exemption That Could Help
Florida has one of the most attractive homestead exemptions in the nation. This exemption shields the full value of a primary residence from various creditors. Although this shield does not apply to government debt, unpaid medical bills generally cannot result in forced sales. This means that a Florida senior could theoretically accumulate considerable medical debt without ever being forced to sell their home. This homestead exemption can be useful in many other aspects of estate planning and elder law.
State May Still "Take" Your Home After You Pass Away
Even though your home may be protected when you apply for Medicaid, federal law requires states to recover the cost of benefits provided to you after your passing. That means your home - and any other assets you have - may need to be sold and the proceeds used to repay the government. This is known as "estate recovery". That being said, with the right planning strategies, your home and life savings can be protected from both the spenddown and from estate recovery after your passing.
Do I Have to Sell My Home to Qualify for Medicaid?
Seniors who own homes worth more than the equity limit may wonder whether they need to sell their properties in order to qualify for Medicaid. While this is certainly an option, it may not be necessary. First, seniors should know that once they sell their homes, their on-paper net worth may rise dramatically for Medicaid eligibility purposes. On the other hand, seniors can reduce their net worths by keeping wealth invested in real estate. If the property is worth more than the equity limit, a reverse mortgage could help drain its value. Seniors might also consider paying for various renovations and improvements to generate “spend down expenses.” For example, seniors might reduce their bank account balance by spending large sums on repairing the roof, renovating the kitchen, putting in new hardwood flooring, and so on.
That being said, some seniors may still want to sell their homes after entering a long-term care facility and experiencing nursing home costs. Seniors may be able to do this and still qualify for Medicaid, but only with targeted estate planning and elder law strategies. The five-year lookback period may be important in this situation. If a senior transfers their home to a beneficiary and applies for Medicaid five years later, they can still qualify. This also applies if a senior sells their home and transfers the resulting funds to their beneficiaries.
Seniors May Need to Demonstrate an “Intent to Return”
If a senior qualifies for Medicaid and leaves their primary residence behind, they may need to demonstrate an “intent to return.” In other words, they have to give Medicaid the impression that they wish to start living in their own home once again at some point in the future. Seniors can demonstrate this intent even if it is impossible for them to ever return. For example, they might have a terminal illness or struggle with poor mobility – and Medicaid will still accept their intent to return at face value. Potential issues arise when seniors start renting out their homes or engaging in similar behavior, making it obvious that they do not actually intend to return.
Discuss Options for Nursing Home Costs With Roulet Law Firm, P.A.
Although most seniors in Minnesota and Florida own their own homes, each family has unique financial concerns, priorities, and needs when approaching nursing home costs. After reading through an online article, families may feel more confident about the various programs, opportunities, and strategies when tackling this issue. However, online research may not provide the same degree of personalized attention as an elder law attorney in Minnesota or Florida. During a consultation, seniors and their relatives may be able to discuss their specific circumstances – including their homes, medical needs, and nursing home costs. A conversation with Roulet Law Firm, P.A. could represent an opportunity to discuss these details further. Families in Florida may call us at (941) 909-4644, while those in Minnesota can dial (763) 420-5087. Or you can fill out the contact form on this page and a member of our team will reach out to you to schedule your consultation.
Also, here are two additional resources where you can discover more about how you can protect your home and life savings from long-term care and nursing home costs:
