The transition to long-term care is often one of the most stressful periods a family can face in Ormond Beach or Palm Coast. While the primary focus is on ensuring a loved one receives the best possible care, the financial reality of nursing home costs can quickly become overwhelming. Florida Medicaid is designed to help, but the application process is notoriously strict. A single oversight can lead to months of denied coverage or unnecessary asset depletion.
At Selis Law Firm, we see many families who wait until a crisis occurs to begin their research. By then, they may have already made choices that complicate their eligibility. We believe that understanding the common Florida Medicaid planning mistakes to avoid can provide the peace of mind you need to focus on what matters most: your family.
Treating the Five-Year Look-Back Period as a Suggestion.
One of the most frequent errors involves a misunderstanding of the Medicaid look-back period. In Florida, the Department of Children and Families (DCF) reviews all financial transactions made within the 60 months before your application (Fla. Admin. Code R. 65A-1.712). This review determines if you transferred assets for less than their fair market value.
Many people believe they can gift money to their children or move property out of their name right before applying. But these uncompensated transfers trigger a penalty period. During this time, the applicant is ineligible for Medicaid benefits, leaving the family to pay for nursing home care out of pocket. The penalty is calculated by dividing the value of the gift by the state’s current penalty divisor, which represents the average monthly cost of nursing home care in the state. Even small gifts for birthdays or graduations can create issues if they are not adequately documented or part of a calculated legal strategy.
Miscalculating the Homestead Exemption.
Florida law provides strong protection for a primary residence, but these protections have specific limitations when it comes to Medicaid. Under current rules, a home is generally an excluded asset if the equity is below a certain threshold. For 2026, the equity limit for a single applicant is approximately $730,000 (Fla. Admin. Code R. 65A-1.712; 42 U.S.C. § 1396p).
A common mistake is assuming the home is always safe. If a single individual enters a nursing home without the intention of returning home, or if the house is sold during the Medicaid period without proper planning, the proceeds may be counted as a resource. This can lead to an immediate loss of benefits. We work with clients to ensure their homestead remains protected, while adhering to the strict requirements regarding intent to return and spousal occupancy.
Ignoring the Income Gap and Qualified Income Trusts.
Florida is an “income cap” state. This means if your gross monthly income exceeds the limit ($2,982 as of January 2026), you are technically ineligible for Medicaid, even if your income is far less than the actual cost of a nursing home.
Families often feel defeated when they realize their Social Security and pension put them just a few dollars over this limit. But this is where a Qualified Income Trust (QIT), also known as a Miller Trust, becomes essential. Failing to set up and adequately fund this trust on a monthly basis is a critical error. The excess income must be deposited into the trust account in the same month it is received to maintain eligibility. If you miss a month or set up the trust incorrectly, Medicaid may deny payment for the entire period.
Spending Down Assets Without a Strategic Plan.
When faced with the $2,000 countable asset limit for a single applicant, many families start spending money rapidly to “get under the limit” (Fla. Admin. Code R. 65A-1.712). While spending down is a valid strategy, doing so without a plan can be wasteful.
You do not have to become entirely indigent to qualify for help. Florida law allows for several exempt assets, such as one vehicle of any value, certain burial funds, and specific types of life insurance. Instead of spending money on items that won’t improve your long-term situation, we help families allocate those funds for allowable expenses, such as home repairs, purchasing a more reliable vehicle, or paying off existing debt. This approach preserves the estate’s value for the family while still meeting Medicaid’s requirements.
Failing to Protect the Community Spouse.
For married couples in Palm Coast or Flagler County, the rules allow the “community spouse” (the one staying at home) to retain a higher amount of assets and income, thereby preventing them from falling into poverty. This is known as the Community Spouse Resource Allowance (CSRA).
A significant mistake occurs when a couple assumes they must spend down all their joint savings before the ill spouse can qualify for benefits. Under Florida law, the community spouse is permitted to retain up to $162,660 in countable assets in 2026 (Florida DCF ESS Policy Manual). Furthermore, if the community spouse’s income is below a certain level, they may be entitled to a portion of the applicant’s income. Failing to utilize these spousal protections can leave the healthy spouse in a precarious financial position.
Why Professional Guidance Critically Matters in Elder Law.
Medicaid rules are not only complex but also constantly changing. What worked for a neighbor two years ago may not apply to your situation today. At Selis Law Firm, we take a detail-oriented approach to every case. We understand that you aren’t just looking for a set of forms; you are looking for a way to care for your spouse or parent without losing everything you have worked for.
We have spent years serving the Ormond Beach and Palm Coast communities. Scott Selis has served as the Chair of the Florida Bar’s Elder Law Section Legislative Committee and was named Elder Law Attorney of the Year in 2016. Our experience enables us to anticipate the challenges the Department of Children and Families may present and address them before they become obstacles.
Our team is here to listen to your story with compassion and understanding. We understand how weighty these decisions can be, and we want to help you make them with confidence.
Contact Selis Law Firm for a Free Consultation.
You do not have to navigate the complexities of Florida Medicaid alone. We offer a complimentary consultation to discuss your specific situation and help you determine the most suitable path forward for your family’s long-term care needs.
Contact us today at 386-210-0058 to schedule your talk with our compassionate legal team. Whether you are planning or facing an immediate need for care, we are ready to help you protect what matters most.
