What Assets Are Exempt When Determining Florida Medicaid Eligibility in 2025?
By: Barry E. Haimo, Esq.
September 16, 2025
Florida’s Medicaid program imposes very strict limits on countable assets for those applying for long‑term care Medicaid. However, several types of property and accounts are exempt, meaning they are not counted toward those limits.
Knowing which assets qualify as exempt can make all the difference in preserving your eligibility while retaining essential assets for daily living or estate planning. Which assets are exempt?
Primary Residence (Homestead)
Your primary home is exempt up to a home equity cap of $730,000 as of 2025. The exemption applies:
- if the applicant or their spouse lives there,
- if the applicant demonstrates an intent to return,
- if a dependent child (under age 21 or blind/disabled) resides there.
If the property exceeds the equity limit and no qualifying occupant resides there, it becomes countable and can jeopardize Medicaid eligibility.
It’s also important to note that even if currently exempt, the home may still be subject to Medicaid estate recovery after death unless further planning tools, such as a Lady‑Bird deed, are used.
Vehicle(s)
One vehicle is exempt, regardless of value, as long as it’s used for transportation by the applicant or household member.
However, a second vehicle may also be exempt in certain situations – especially if it is over seven years old and considered a non-luxury vehicle.
Personal Property & Household Goods
Everyday items (such as furniture, appliances, clothing, and most jewelry) are generally exempt. That being said, collectibles or art may sometimes be considered countable if deemed high-value or saleable.
Burial & Funeral Arrangements
Prepaid burial plans, irrevocable burial contracts, funds set aside for funeral expenses (up to state limits), and burial plots are considered exempt assets.
Life Insurance Policies
Term life insurance policies with no cash value are completely exempt.
Whole life or universal life policies are counted to the extent of their cash surrender value, but small permanent policies with face values under $2,500 may be exempt.
Retirement Accounts
Qualified retirement accounts, such as IRAs, 401(k)s, and 403(b)s, are exempt in Florida – provided the owner is taking required periodic distributions. If distributions are not taken, the account may be considered a countable asset.
Take a look at the chart below for a quick visual representation of Medicaid-exempt assets:
Have questions about the exemption status of specific assets you hold? Or just want to start Medicaid planning to protect your assets? Reach out today.
