As we age, one of the most pressing concerns for many individuals and families is the potential need for long-term care, particularly in a nursing home setting. This type of care can be incredibly costly, and without a solid plan in place, it can deplete your life savings and assets, including your beloved home. 

An Asset Protection Attorney in Tampa from Mortellaro Law can help you implement strategies to help protect your assets and ensure that you or your loved ones are financially secure, even in the face of potential nursing home costs.

Florida’s Aging Population | Asset Protection Attorney in Tampa

Florida has long been known as a premier destination for retiring adults. The Florida Health Care Association projects growing future needs for long-term care among the state’s residents: 

  • Persons age 65 and older currently make up about 20 percent of Florida’s population.
  • By 2030, more than one in four Floridians will be part of this age group.
  • Florida will add a quarter million additional residents each year through 2030, and 57 percent of these new residents will be 60 years of age or older.
  • Between 2015 and 2050, the age 85+ population is projected to more than triple.

As more residents need care in the 691 licensed Florida nursing homes, costs will increase. 

Understanding Nursing Home Costs

The cost of nursing home care can vary significantly depending on location, the level of care required, and the facility itself. In 2023, the median annual cost of care for a private room in a nursing center was $118,620 for a semi-private room and $136,872 for a private room. 

These expenses can rapidly drain resources, leading many individuals to exhaust their savings or require assistance from government programs, such as Medicaid, which has strict asset limits.

Florida Asset Protection Planning

Planning ahead is critical. An Asset Protection Attorney in Tampa from Mortellaro Law can help you take proactive steps to safeguard your home and other assets and ensure that your hard-earned wealth is passed on to your heirs. Some common strategies we may recommend include: 

Create a Revocable Living Trust

A revocable living trust can be an effective tool for asset protection. By transferring ownership of your assets into the trust, you can retain control while potentially shielding those assets from being counted against Medicaid’s asset limits. In Florida, Medicaid enforces a 60-month (5-year) look-back period regarding income and asset transfers. This means that any transfers of assets into an irrevocable trust should ideally occur well in advance of applying for Medicaid. Failing to adhere to this timeline may result in penalties for the applicant. 

Use an Immediate Annuity | Asset Protection Attorney in Tampa

In Florida, when only one spouse applies for Medicaid, the non-applicant spouse, known as the community spouse, is allowed to retain up to $157,920 of the couple’s assets in 2025. Additionally, the community spouse can keep a Minimum Monthly Maintenance Needs Allowance (MMMNA), which is set at $2,555 per month and may increase depending on specific shelter costs.

An immediate annuity can be an effective estate-planning tool for couples in which one spouse is applying for Medicaid while the other remains at home. An immediate annuity is a contractual agreement between the annuitant (in this case, the community spouse) and an insurance company, obligating the insurer to pay the annuitant a fixed monthly amount. The annuity provides monthly payments, ensuring the community spouse’s continued financial stability while the Medicaid recipient qualifies for benefits.

Consider Long-Term Care Insurance

Medicaid eligibility often involves navigating a series of requirements based on your financial circumstances. One of the limitations of Medicaid is that it restricts you to facilities that accept this type of insurance. In contrast, long-term care insurance offers a broader range of care options, often providing higher-quality services. Investing in long-term care insurance can provide a safety net to cover the costs of care without significantly impacting your assets. Policies vary widely, so it’s important to thoroughly research options and choose one that best fits your needs.

While these plans can represent a significant financial investment, particularly if you hold a policy for years without needing care, they serve as a valuable resource. Long-term care insurance can help preserve your assets, preventing you from depleting your savings on care or having to transfer assets in order to qualify for Medicaid assistance.

Consult An Asset Protection Attorney in Tampa Today 

Protecting your home and other assets from nursing home costs is not just about safeguarding your wealth; it’s about ensuring peace of mind for you and your loved ones. By taking a proactive approach to estate planning and asset protection, you can create a strategy that provides for your needs while preserving your legacy. 

To get started on securing your financial future, consult with an asset protection attorney in Tampa at Mortellaro Law who can guide you through the intricacies of planning for long-term care.