How to Protect Your Assets if a Spouse Needs Nursing Home Care in Florida

Florida long-term care benefits lawyer explains options to protect assets if a spouse goes into a nursing home. Call (407) 574-8125 to schedule your free assessment for assistance.

Caring for a spouse who needs nursing home care can feel overwhelming—both emotionally and financially. And figuring out how to pay for long-term care is even more challenging, especially in Florida, where the cost of nursing home care can exceed $10,000 per month, and without a plan, your savings and assets could quickly disappear.

However, there is good news and a better way to protect your hard-earned assets while ensuring your spouse receives the quality care they need. This simple guide will walk you through several practical strategies to safeguard your financial future.

Why Asset Protection Matters

In Florida, nursing home care is expensive, and without proper planning, the financial burden can be immense. There is a long-term care benefits program to assist with nursing home costs. It evaluates both income and assets to determine eligibility. But without proper guidance, sadly, this process can leave the “community spouse” — the one not in the nursing home — financially vulnerable.

By understanding how the long-term care benefits program treats assets, you can take steps to proactively protect your property, savings, and retirement funds.

Exempt vs. Non-Exempt Assets in Long-Term Care Benefits Planning

The long-term care benefits program distinguishes between two asset classes—those that are protected (exempt) and those that are not (non-exempt) and count against eligibility limits.

Exempt Assets

The following assets are considered “exempt” when the program determines eligibility:

• Primary residence (valued under $688,000—if you/spouse plan to return to it)
• One vehicle (regardless of value)
• Prepaid burial arrangements
• Household items and personal belongings
• Certain retirement accounts, depending on specific conditions

Non-Exempt Assets

The following assets are considered “non-exempt” from the long-term care benefits eligibility limits:

• Cash savings and checking accounts
• Stocks, bonds, and mutual funds
• Real estate (other than your primary residence)
• Additional vehicles

Knowing the difference between exempt and non-exempt assets can help you plan and protect your family with the right strategy.

The Community Spouse Resource Allowance (CSRA)

The program’s rules allow the community spouse to keep a portion of the couple’s assets while the other spouse qualifies. This allowance, known as the Community Spouse Resource Allowance (CSRA), is designed to prevent financial hardship for the spouse not in the nursing home.

As of 2025, the CSRA allows the community spouse to retain up to $157,920 in countable assets. If your assets exceed this limit, the program will require a “spend-down” before your spouse qualifies for assistance. However, there are ways to protect your excess assets legally.

Strategies to Protect Assets (in Florida)

1. Spousal Refusal

Florida permits the community spouse to refuse to support the institutionalized spouse. By filing a Spousal Refusal declaration, you can transfer excess assets to the community spouse while still qualifying the other spouse for the program. Keep in mind that the program may later pursue reimbursement from the refusing spouse, so this option needs careful consideration.

2. Compliant Annuity

A compliant annuity converts countable assets into a stream of income for the community spouse. These annuities must meet strict criteria under the program rules to qualify, such as being irrevocable and non-assignable. This strategy can reduce excess assets while providing financial support to the community spouse.

3. Asset Conversion

Another option is to convert non-exempt assets into exempt assets. For example, you could pay down the mortgage on your home or purchase a new vehicle. These financial transactions can lower your countable assets while maintaining their value.

However, be mindful of the five-year look-back period — any asset transfers within five years of applying for the program could result in a penalty.

We provide more strategy details in our recent blog, “7 Planning Strategies Every Floridians Should Know.” In addition to these strategies, having the right legal documents in place can make implementing asset protection plans more efficient and effective.

The Role of Estate Planning Documents in Asset Protection

Proper legal documents can strengthen your asset protection strategy. Several essential documents include:

• Durable Power of Attorney: This document allows a trusted individual to manage financial decisions on your behalf if you’re unable to do it for yourself.
    
• Living Trust: A living trust can help transfer assets out of the applicant’s name while keeping them accessible to the community spouse. 
• Last Will and Testament: A will ensures your children or other heirs are not unintentionally disinherited if one spouse requires nursing home care.

Avoiding Common Mistakes in long-term care Planning

Failing to plan adequately can lead to costly mistakes. Here are several critical missteps to avoid:

• Gifting Assets Without Legal Guidance: Giving away assets can trigger the five-year look-back period, leading to penalties or delayed eligibility. 
• Not Updating Beneficiary Designations: Ensure all accounts and policies reflect your current financial and estate planning goals. 
• Overlooking Spousal Income Protections: The program allows the community spouse to retain a Minimum Monthly Maintenance Needs Allowance (MMMNA), ensuring adequate income during the nursing home stay.  

Why You Need Legal Guidance

Deciding how to pay for long-term care for a spouse can be both difficult and complex, but working with a long-term care benefits lawyer can help ensure you choose the best options for your family. From understanding the program’s eligibility rules to exploring strategies for asset preservation, a trusted lawyer can guide you through the process and help protect your family’s financial future.

At Family First Firm, our dedicated long-term care benefits attorneys work with Florida families to help protect your assets and ensure your spouse receives the care they deserve. Call us at (407) 574-8125 or fill out our confidential online form to schedule a consultation. Let us help guide you through the planning process, creating a plan that aligns with your future goals—together!

While you wait for your consultation, we invite you to download our free E-book, “How Can You Afford Your Loved Ones’ Skyrocketing Nursing Home Costs?”