The Short Answer

In Florida, a “Lady Bird deed” (often called an enhanced life estate deed) is commonly used to help a home pass to heirs outside of probate. Because Florida’s Medicaid estate recovery is typically pursued as a claim in the probate estate, keeping the home out of probate can reduce the risk of a Medicaid estate recovery claim being paid from the home.

However, it is not a guaranteed “shield” in every situation, and the wrong deed language (or the wrong family situation) can create major problems with homestead rights, taxes, and eligibility planning.

What Florida Law Says

Florida’s Medicaid Estate Recovery Act generally allows the state to seek repayment for certain Medicaid benefits by filing a claim against the estate of a deceased Medicaid recipient through the probate process. That is why planning tools that avoid probate are often discussed in the Medicaid/nursing home context.

The Statute

The primary law governing this issue is Fla. Stat. § 409.9101.

This statute establishes that Medicaid estate recovery is pursued by the agency filing a statement of claim against the deceased recipient’s estate in probate, subject to important limits and exceptions (including protections when a spouse or certain children survive the recipient, and other restrictions on what property can be reached).

For additional background, you may find these helpful: Will Florida Medicaid or Medicare try to recover money from my mother’s estate? and How do I request a Florida Medicaid hardship waiver?.

Why You Should Speak with an Attorney

While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:

• Strict Deadlines: Medicaid estate recovery is asserted as a probate claim, and probate creditor-claim timing and notice issues can affect leverage and outcomes.
• Burden of Proof: Whether the home is actually part of the probate estate (and whether it is protected homestead) often turns on the deed language, title history, and family status at death.
• Exceptions: Florida law includes limits on enforcement of the Medicaid debt when certain survivors exist (for example, a surviving spouse or certain children), and there are hardship concepts that may apply under the statute.

Also, Lady Bird deeds intersect with Florida homestead restrictions and spousal rights. A deed that is “fine in theory” but wrong for your family can trigger disputes, cloud title, or force expensive corrective probate/quiet title litigation later.

If you want to read more about probate-avoidance planning, see: Can a Lady Bird Deed Help My Heirs Avoid Probate in Florida? (note: confirm the final URL with your site editor).

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.