Can rental property be protected from Medicaid?

In Florida, there are Medicaid compliant tools to allow you to keep your rental property and still qualify for Medicaid.

Attorney Tom Olsen: Mary's mom is going to need to go into a nursing home. She's got a little bit different situation that I don't recall how we handle something like that but she doesn't have much cash but Mary's mom has got a home. Mary's mom has got a rental home. How would you handle that situation as far as getting Mary's mom qualified for Medicaid?

Attorney Robert Hidock: Okay. Well, the home itself we know is not accountable asset, so the home is always protected even if someone's in a nursing home, there's an intent to return home so the home itself is protected. We at the Olsen Law Group would like to have that home put in a ladybird deed, that way Medicaid cannot come after the estate for any reimbursement claims. As far as the rental property is concerned, the good news for Mary is that it is not accountable asset either. However, the income less expenses is income to her that she would have to pay to the nursing home.

Attorney Tom Olsen: What you're saying is in that situation with the proper planning Mary's mom would be allowed to keep that rental home, collect the rents from it, I guess pay taxes, maintenance, and insurance, and then whatever's left over after that would be applied towards the nursing home costs.

Attorney Robert Hidock: Yes, but the rental home itself, the asset would become protected and would not count towards her accountable assets for Medicaid purposes.

Attorney Tom Olsen: That someday when Mary‘s mom passes away that rental home will still be there available for the children to inherit.

Attorney Robert Hidock: Yes, and it would also be wise for Mary to have an EOD on the rental property as well thus avoiding probate and avoiding any reimbursement claims.