The Florida Probate and Medicaid Connection You Need to Understand
Probate in Florida already poses complex challenges to estate management which become even more complicated when Medicaid plays its additional rules. Agency for Health Care Administration (AHCA) needs notification about deaths of individuals who reached 55 during probate proceedings regardless of Medicaid history.
Why does this matter? Because Medicaid claims aren’t just any claims – they’re considered “Class 3” claims, which basically means they jump to the front of the line before most other creditors or beneficiaries can receive anything.
What's Medicaid Anyway?
Simply put, Medicaid is health coverage for people who don’t have a lot of money. It’s funded by the federal government but run by each state. To qualify, you need to have income and assets below certain levels, and trust me, the application process can be a real headache.
For those who do qualify, Florida Medicaid helps cover medical costs they otherwise couldn’t afford. It’s a lifeline for many seniors who need nursing home care or other long-term services.
And just to be clear – Medicaid is NOT the same as Medicare. They’re completely different programs with different rules, so don’t mix them up when planning your estate.
Good News: Some Assets Are Safe from Medicaid Claims
Here’s some relief for worried families:
- Your family home is protected! Florida’s homestead exemption shields your home from Medicaid claims, even during probate.
- Time can be on your side. If it’s been more than 2 years since your loved one passed away, Medicaid claims are basically toast – they can’t touch the estate anymore.
- But heads up – Medicaid isn’t the only state program that might come knocking. Other assistance programs might also file claims against the estate.
How Medicaid Claims Work in Probate
When probate begins, AHCA needs to be notified about the estate. But here’s what often happens – they don’t even wait for your notification and file claims right away. Once they file, your attorney will need to figure out if their claim is valid and if they can actually touch any of the estate’s assets.
Listen up – Medicaid claims can be HUGE. I’m talking potentially wipe-out-the-entire-estate huge. So here’s my strongest advice: if your loved one passed away less than 2 years ago, think very carefully before starting probate if you suspect they received Medicaid.
If a Medicaid claim is filed and assets are available to pay it, the entire inheritance (except for protected property like the homestead) could vanish to pay off the state.
The best move you can make? You need to consult a Florida probate attorney before starting any filing process. Professional legal advice from an attorney enables you to identify hidden Medicaid claims while determining appropriate legal methods to handle them and explore possibilities that defend your inheritance.
They might suggest:
- Waiting until that crucial 2-year mark before opening probate
- Looking into whether any exemptions apply to your situation
- Exploring whether there are grounds to contest an invalid claim
- Helping you understand which assets might be protected
Before starting probate procedures you should seek professional guidance because this approach prevents Medicaid from consuming your family’s inheritance. Early seeking of professional advice can help you protect what truly matters before it becomes too late.
