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Picture this: You are sitting on your patio in Boca Raton, enjoying the warm Florida breeze and thinking about the legacy you’ve built. You’ve worked hard for decades, paid off the mortgage and saved enough to ensure your family is taken care of. But then, a health crisis hits. Suddenly, the conversation shifts from retirement travels to the staggering cost of long-term care. You’ve heard that Medicaid can help cover those costs, but you’ve also heard horror stories about people losing everything just to qualify.
The truth is that Medicaid Planning is one of the most misunderstood areas of Elder Law. Many Florida seniors assume they have to “spend down” every penny they own before the state will step in. Others try to take matters into their own hands by gifting money to their children, only to find out they’ve triggered a massive penalty.
At The Siegel Law Group, P.A., we see these mistakes every day. My goal is to make sure you don’t fall into these traps. Protecting your hard-earned assets is a moral imperative, it’s about honoring your life’s work and ensuring your spouse and children are secure.
Let’s dive into the seven most common mistakes we see in Florida Medicaid Planning and how you can fix them before it’s too late.
1. Giving Away Assets Without Understanding the Five-Year Look-Back Rule
This is perhaps the single most common mistake families make. You might think, “I’ll just put the house in my daughter’s name” or “I’ll give my grandkids their inheritance now so the government can’t touch it.”
In Florida, Medicaid has a 60-month “look-back” period. When you apply for benefits, the Department of Children and Families (DCF) reviews every financial transaction you’ve made in the last five years. If they see that you sold property for less than it was worth or gave away significant cash gifts, they will impose a penalty period. During this time, you will be ineligible for Medicaid, leaving your family to foot the bill for expensive nursing home care.
The Fix: Never transfer assets without a strategy. If you need to move assets, we can help you do so using legal tools like an Enhanced Life Estate Deed (often called a Lady Bird Deed) or specific types of Trusts that protect your home while keeping you eligible for benefits.
2. Failing to Create or Properly Fund a Miller Trust (Qualified Income Trust)
Florida is what we call an “income cap” state. This means if your monthly gross income, including Social Security and pensions, exceeds a certain limit (currently $2,901 as of 2025), you are technically ineligible for Medicaid. It doesn’t matter if your nursing home costs $10,000 a month and you only make $3,000; that extra $99 makes you “too rich” for help.
The Fix: You need a Qualified Income Trust, also known as a Miller Trust. This legal document allows you to divert your excess income into a Trust, making it “invisible” for Medicaid eligibility purposes. However, many people forget to actually fund the Trust every month or they set it up incorrectly. Our team at The Siegel Law Group, P.A. ensures your Miller Trust is drafted perfectly and explains exactly how to manage it so your benefits are never at risk.
3. Relying on Outdated or Poorly Drafted Power of Attorney Documents
You might have a Power of Attorney from ten years ago that you think is fine. But for Medicaid Planning, a “standard” document often isn’t enough. To protect assets when someone has already lost cognitive capacity, the person holding the Power of Attorney needs specific “superpowers” or “hot powers.” These include the explicit authority to make gifts, create Trusts or enter into personal service contracts.
Without these specific provisions, your loved ones may be forced to go through a long and expensive Probate or guardianship process just to get the permission to protect your assets.
The Fix: Have an Elder Law attorney review your documents. We make sure your Estate Planning documents are “Medicaid-ready,” giving your family the tools they need to act in your best interest during a crisis.
4. Delaying Planning Until a Medical Crisis Strikes
Waiting until you are at the door of the nursing home to think about Medicaid is like trying to buy homeowners insurance while your house is on fire. While “crisis planning” is possible and we do it often, your options are much more limited.
Proactive planning allows you to navigate the five-year look-back period comfortably. It gives you the chance to protect the maximum amount of assets and choose the facility you actually want to live in, rather than being forced into whichever one has an immediate Medicaid bed available.
The Fix: Start now. Even if you are healthy and active, setting up the right Estate Planning structure today saves your family from making panicked, high-stakes decisions later.
5. Misunderstanding “Countable” vs. “Exempt” Assets
A lot of seniors think they have to be completely broke to get Medicaid. That isn’t true. Florida law allows you to keep certain “exempt” assets, such as your primary residence (up to a certain equity value), one vehicle and certain personal effects.
The mistake happens when people spend down their exempt assets or fail to convert “countable” assets (like extra savings accounts or a second car) into “exempt” ones. For example, using cash to pay off the mortgage on your exempt home is often a smart move, but many people don’t know that’s an option.
The Fix: We provide a comprehensive assessment of your balance sheet. We show you how to reshuffle your assets so that you meet the $2,000 individual limit without actually losing the value of what you’ve saved.
6. Attempting DIY Medicaid Planning or Relying on Informal Advice
I’ve seen families try to follow advice they found on a random internet forum or from a well-meaning neighbor. The problem is that Medicaid rules are incredibly dense and change frequently. What worked for your friend in New York will not work in Florida. Even within Florida, the way the local offices in South Florida handle applications can vary.
A single typo on a Miller Trust or a missed bank statement from four years ago can lead to a denial. Re-applying can take months, during which time the family is paying out-of-pocket for care.
The Fix: Work with a professional who lives and breathes this stuff. At The Siegel Law Group, P.A., we don’t just fill out forms; we build a shield around your family.
7. Not Tracking and Documenting Every Transaction
Medicaid examiners are like forensic accountants. They want to see where every dollar went. If you withdrew $5,000 three years ago to help your grandson buy a car but didn’t keep a record of it, Medicaid may treat that as an improper gift. If you sold a boat but don’t have the bill of sale, that’s a problem.
The Fix: Keep meticulous records. If you are helping a family member financially, document it as a loan or a specific gift and consult with us to see how it affects your 60-month window. We help our clients organize their financial history so that the application process is as smooth as possible.
Before and After: The Power of Planning
To illustrate how this works, let’s look at a hypothetical example of a couple in Boca Raton.
The Scenario: “Robert” and “Linda” have $200,000 in savings and a home worth $500,000. Robert needs to move into a memory care facility that costs $9,000 a month.
The “No Plan” Outcome: Linda spends $9,000 a month until their savings are down to $137,400 (the 2024/2025 community spouse resource allowance). She is stressed, worried about her own future and watching their legacy vanish.
The “Siegel Law Group” Outcome: We implement a strategy using a Personal Service Contract and other Florida-appropriate Medicaid Planning tools based on their exact facts. We protect the house using an Enhanced Life Estate Deed. Linda keeps the majority of their savings and Robert gets the care he needs through Medicaid. Linda has peace of mind knowing she can stay in her home and still leave an inheritance for their children.
Frequently Asked Questions About Florida Medicaid
Can Medicaid take my home after I pass away?
Florida has an “estate recovery” program where they can try to get reimbursed for the cost of your care from your Probate estate. However, if your home is properly protected as “homestead” property or placed in the right kind of Trust, it is generally protected from these claims.
Do I have to be in a nursing home to get Medicaid?
Not necessarily. Florida has programs like the Statewide Medicaid Managed Care Long-Term Care program that can provide help for assisted living or even in-home care, though these programs often have waiting lists.
Is it too late to plan if my spouse is already in a nursing home?
No! It is almost never too late to protect at least a portion of your assets. We call this “crisis planning” and it is a core part of what we do.
Secure Your Peace of Mind Today
Medicaid Planning isn’t about “gaming the system.” It’s about using the legal tools available to ensure that a lifetime of hard work isn’t wiped out by a few years of medical bills. You owe it to yourself and your family to protect what matters most.
If you are a senior in South Florida or you are caring for aging parents in the Boca Raton area, don’t wait for a crisis to act. Let’s sit down and look at your specific situation. We will help you navigate the “look-back” rules, set up the necessary Trusts and ensure your Estate Planning is airtight.
Contact The Siegel Law Group, P.A. today to schedule a consultation. Let’s make sure your legacy stays exactly where it belongs: with your family. Visit our About Page to meet the team or call us directly to get started. Peace of mind is just a phone call away.
Call or text 561-955-8515 or complete a Free Case Evaluation form
