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How to be Eligible for Florida Medicaid with Real Estate Investment Income

Understanding how real estate income affects Florida Medicaid eligibility is important information for Florida property investors over 65. The Florida Agency for Health Care Administration sets specific guidelines for income and asset limits that determine eligibility.

Income Considerations

The Florida Department of Children and Families evaluates all sources of income when determining Medicaid eligibility. For real estate investors, this includes rental income, even if managed by others. Monthly income limits vary based on household size and specific Medicaid programs.

Rental income evaluation includes:

  • Net rental proceeds after expenses
  • Regular payment schedules
  • Property management fees
  • Maintenance costs
  • Tax implications

Asset Limitations

Beyond income considerations, Medicaid imposes strict asset limits. While some assets are exempt, investment properties often count toward eligibility limits. However, certain strategies may help protect these assets while maintaining eligibility.

Property Investment Structures

The Florida Department of Elder Affairs suggests careful consideration of how investment properties are structured. Different ownership arrangements can affect how income and assets are counted for Medicaid purposes:

Business Entity Options

  • Limited Liability Companies
  • Family Limited Partnerships
  • Irrevocable Trusts
  • Personal Property Management

Planning Strategies

There are several planning strategies for real estate investors seeking Medicaid coverage:

Income Management

Proper structuring of rental income through legitimate business expenses can help manage countable income. Documentation of all expenses proves essential for verification purposes.

Asset Protection

Converting countable assets into exempt assets may help achieve eligibility while preserving wealth. This might include reinvesting in a primary residence or other exempt assets.

Asset protection can also include the use of trusts to move ownership away from the balance sheet of the Medicaid applicant.

Look-Back Period

Medicaid’s five-year look-back period requires careful planning. Any transfers of assets, including real estate, within this period may trigger penalties. Professional guidance helps ensure transactions comply with regulations while meeting financial goals.

Documentation Requirements

Applicants must provide comprehensive documentation including:

Property ownership records, including but not limited to title deeds of any real estate property owned.

Income statements, with a view to showing that current monthly income does not surpass the Medicaid limits in Florida.

Expense records

Tax returns and bank statements, often for the last five years to show that any assets where not gifted or sold for less than fair market value in order to qualify for Medicaid.

The Importance of an Attorney

Given the complexity of Medicaid rules and real estate investment structures, property investors over 65 can benefit greatly from seeking professional guidance rather than “going it alone.” Working with experienced elder law attorneys and real estate attorneys helps develop appropriate strategies for maintaining both investment income and Medicaid eligibility.

South Florida Law

Successfully qualifying for Florida Medicaid while maintaining real estate investments requires careful planning and attention to program requirements. Understanding how different investment structures affect eligibility helps investors make informed decisions about their properties and healthcare coverage.

At South Florida Law we have the knowledge and resources to manage the complexities of Medicaid and we are also experienced Florida real estate attorneys who can advise and restructure real estate investments through the creation of trusts and other ownership structures.  We help our senior clients and their families to have a secure future with access to essential healthcare services while protecting their assets for future generations.  If you are in the process of applying for Medicaid or if you have Medicaid and are concerned about eligibility, having to sell down your assets, losing your primary home, or any other aspect of Florida Medicaid, reach out to us today via our contact form or by calling (954) 900-8885.

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