For Florida residents, estate planners, and gun owners, the answer is more nuanced than many headlines suggest.

Quick Answer

The One Big Beautiful Bill Act (OBBBA), effective January 1, 2028, introduces significant reforms to Medicaid eligibility for long-term care. This document summarizes the most impactful changes for Florida residents, outlining which exemptions are being eliminated, which remain valid, and what planning steps should be taken now.

Impact of OBBBA on Florida Medicaid Exemptions (Effective Jan 1, 2028)

The most significant change is a new cap on homestead (home) equity. As of 2028, a Florida Medicaid applicant will be disqualified from long-term care coverage if their equity interest in their primary home exceeds $1,000,000 unless a spouse or qualifying child lives there. Prior allowances tied to inflation will be frozen. In addition, the retroactive Medicaid coverage period is shortened, and states are required to conduct more frequent eligibility redeterminations.

Eliminated or Curtailed Exemptions

• Homestead equity over $1 million will no longer be exempt.
• One month of retroactive coverage is eliminated for seniors.
• Strategies to convert assets into home equity are capped.
• Eligibility reviews will become more frequent and stricter.

Exemptions and Strategies That Remain Valid

Despite these restrictions, several important exemptions and planning tools remain unchanged under OBBBA, including:
• Primary residence (up to $1 million equity)
• One vehicle and personal property
• Burial funds and prepaid funeral plans
• Retirement accounts in payout status
• Spousal protections including CSRA and MMMNA
• Five-year lookback rules and transfer exceptions
• Medicaid Asset Protection Trusts (MAPTs)
• Special needs and pooled trusts
• Qualified Income Trusts (Miller Trusts)
• Personal care agreements

Will the Changes Apply Retroactively to Current Medicaid Recipients?

No. The changes in the One Big Beautiful Bill Act are not retroactive. The $1 million home equity cap and other eligibility limitations apply only to Medicaid applications and redeterminations processed on or after January 1, 2028. Applicants already approved under pre-2028 rules will not be automatically disqualified if they continue to meet their eligibility requirements.

However, if a recipient’s eligibility lapses, they reapply, or they experience a change in circumstances (such as a move or gain in assets), their case could be re-evaluated under the new rules. For this reason, it is important for current Medicaid recipients to maintain compliance and plan proactively for recertifications.

Structuring Home Ownership to Stay Below the $1 Million Cap

To preserve eligibility under the $1 million home equity cap, applicants can consider structuring their home ownership strategically:
• Use a reverse mortgage or home equity loan to reduce accessible equity.
• Co-own the home with a qualifying relative (e.g., spouse or dependent child).
• Execute an enhanced life estate deed (Lady Bird deed) to protect homestead value while avoiding probate.
• Ensure a qualifying family member continues to reside in the property.
Each method must be carefully planned in compliance with Florida Medicaid law and estate planning best practices.

Asset Conversion Strategies and Home Equity Limits

Converting excess assets into home equity has historically been a popular strategy. For example, applicants may spend down assets by renovating or upgrading their primary residence. However, under OBBBA, any increase in equity above the $1 million threshold will now be countable as a resource and may cause ineligibility.

Post-2028, families should avoid improvements that raise equity beyond this cap and consider other spend-down methods (e.g., personal care agreements, paying debts, or purchasing exempt items) to avoid disqualification.

More Frequent Redeterminations and Retroactivity Risk

OBBBA mandates more frequent redeterminations (in some cases every 6 months). While these do not impose retroactive penalties on those already approved, they do create more frequent checkpoints for Medicaid agencies to reassess eligibility.

If an applicant’s equity, income, or asset situation changes after 2028—even unintentionally—it may lead to a loss of coverage. This highlights the importance of ongoing compliance, documentation, and legal review of all major financial decisions for Medicaid recipients.

Is Spousal Refusal Affected by OBBBA?

No. OBBBA does not eliminate spousal refusal in Florida. As of now, Florida still permits the community (non-applicant) spouse to refuse to contribute assets to the care of the institutionalized spouse. This allows the applicant to assign a support claim to the state and potentially qualify even if the community spouse holds substantial assets.

While spousal refusal remains legal, it may receive increased scrutiny in future administrative practice, so professional guidance is recommended before relying on it as a planning strategy.

Florida Medicaid 2028: What the OBBBA Means for Your Assets

What is the OBBBA and when does it take effect?

The One Big Beautiful Bill Act (OBBBA) is a federal law that goes into effect on January 1, 2028. It introduces significant changes to Medicaid eligibility for long-term care, including a cap on home equity and stricter asset rules.

How does OBBBA affect asset protection in Florida?

Under OBBBA, certain assets that were previously exempt—including home equity above $1 million—may count against Medicaid eligibility for long-term care. Proactive planning is essential.

Will Florida Medicaid Take My House in 2028?

Can Florida Medicaid take my home if I’m over the $1 million equity cap?

Yes, if your home equity exceeds $1 million and no exempt individual resides in the home, it may render you ineligible for Medicaid under the OBBBA starting in 2028.

Is there a way to reduce my home equity to qualify?

Yes. Strategies include taking a reverse mortgage, making repairs that lower net equity, or transferring ownership to a spouse or qualifying dependent under certain conditions.

How to Qualify for Medicaid in Florida After the OBBBA Changes

What are the new Medicaid qualification rules in Florida?

Starting in 2028, Medicaid applicants must have home equity under $1 million and cannot rely on certain asset exclusions that were previously allowed. A five-year lookback on asset transfers still applies.

Can I still use a Qualified Income Trust or MAPT?

Yes. These tools remain effective under the new law, though their usage must be carefully timed and structured.

Florida Long-Term Care: What Assets Are Safe After 2028?

What assets are still safe from Medicaid spend-down requirements?

Exempt assets will still include one vehicle, personal belongings, life insurance with low cash value, retirement accounts in RMD status, and certain types of irrevocable trusts.

Can I protect rental or investment property?

Only if it’s structured properly, possibly using a trust or business entity. Otherwise, it may count as a non-exempt asset.

OBBBA Explained: Medicaid Eligibility & Planning in Florida

Why was OBBBA passed?

The law aims to tighten eligibility standards, reduce fraud, and ensure more uniformity in Medicaid coverage across states.

What planning strategies should be prioritized before 2028?

Before 2028, consider setting up Medicaid Asset Protection Trusts, transferring assets under permitted exceptions, reducing home equity, and updating estate planning documents.

If you need help with Medicaid issues in Florida contact a Florida Estate Planning lawyer or call us at 904-990-8000

When dealing with Florida trusts, one of the most common questions we hear is:

“Does a trustee have to provide accountings to a beneficiary of an irrevocable grantor trust when the settlor can still change the beneficiaries and no one has a right to distributions?”

The designation of convenience accounts comes from Section 655.80 of the Florida Statute. The statute allows an account’s owner (principal) to designate an agent. The agent is a person who has the authority to withdraw, deposit, and manage from the account while not assuming any of the account’s liabilities. The agent is only granted access to the funds and has no ownership of the account. The impact is that when the original owner dies, the agent’s authority is terminated, and the account is treated as only owned by the principal. This means the account will be governed by the owner’s wishes and estate plan. The real-world impact is that the family member helping the parent doesn’t get to keep the account after the owner dies. The leftover money will be divided according to the owner’s estate plan.

Meanwhile, with a joint bank account, the added individual now owns the account. This impacts several things, including how the account will be treated when one of the owners passes. In a joint account, when one owner passes away, the account passes to the surviving owner automatically and in the survivor’s name only. Florida Statute 655.79 states that unless there is some expressed writing in the opening or maintenance of the account, an account with joint owners will be presumed to be a joint account. This means if you intend to add someone to an account just to help out and not to have any ownership if chosen to be owned jointly, that added individual will now be an account owner.  Section 655.79 has an exception to this presumption by “clear and convincing proof of a contrary intent.”

But this begs the question: What are these vehicles and how are they categorized under the law? Are they an extension of the person and thus treated as someone walking on a sidewalk would be? Or are they viewed as motorized vehicles like a moped or motorcycle? This article seeks to answer that question, and more.

BACKGROUND:

That is the predicament that many face in the process of qualifying for Medicaid. Spousal Refusal, often called the “just say no” option, is when a spouse of a long-term care Medicaid recipient or applicant refuses to pay the costs associated with the long-term care. Under current Medicaid rules in Florida, an individual cannot be legally denied care if the spouse does not need Medicaid and refuses to contribute towards the costs of care in Florida.

UNDERSTANDING MEDICAID:

WHAT IS DIFFERENT BETWEEN THE OLD AND NEW INCOME AND PRINCIPAL ACTS:

Power to Adjust:

One aspect of Florida law that will change in 2025 is the administration of trusts and estates. The Florida Uniform Fiduciary Income and Principal Act (FUFIPA) will replace the 2002 Florida Uniform Principal and Income Act (FPIA).

 
WHO THIS APPLIES TO:

Over the past 15 years, cryptocurrency has slowly become an integrated part of society and day-to-day life. Gas stations have Bitcoin ATMs, famous athletes and celebrities (in)famously starred in a commercial for a Cryptocurrency venture that failed spectacularly, and the latest wave of newly minted millionaires and billionaires largely credit their rise to this new “decentralized” currency.

On December 5th of this past year, the most popular cryptocurrency, Bitcoin, hit a record-high value of $100,000. This surge in price has renewed interest among investors and regulatory bodies alike—everyone wants a piece of the ever-growing pie.

This very concept of cryptocurrencies being “decentralized” and “stateless” is one of the driving forces behind their popularity, but it also serves as a thorn in the side of lawyers, legislators, and laypeople who are trying to navigate the ever-changing cryptocurrency landscape.

IDENTITY:

One of the main issues facing estate planners is how to adequately identify assets such as Bitcoin, DogeCoin, Ethereum, and other cryptocurrencies. Because there is no centralized bank or account that can identify individuals for succession planning purposes, many recommend transferring your cryptocurrencies prior to death (to the extent that this is possible for someone).

Cryptocurrencies rely on a technology known as the “blockchain,” which acts as a sort of ledger showing any transfers of coins in and out of an account. While most cryptocurrency transactions would appear on the blockchain, there are a few ways to complete a transfer without it appearing on the blockchain (such as by physically giving someone a “cold wallet”—discussed further below).

This becomes a further issue as it can be difficult to determine when a cryptocurrency asset was transferred, especially if transferred in a manner that would not appear on the blockchain.  Whether a cryptocurrency transfer is recorded depends on what type of storage vehicle is used.

STORAGE:

There are a few different options out there that people use to manage their cryptocurrencies.  The first consideration is whether the currency will be held by the owner (generally through a personal wallet, as discussed below) or if a third party, such as a crypto exchange, will hold the currency. Crypto exchanges serve as a brokers for purchases and sales involving virtual assets.  Some of the most popular players in the crypto space, such as Binance and crypto.com, are crypto exchanges that have faced much controversy over the last few years.  Perhaps the most well-known crypto exchange to date has been FTX, which very publicly went bankrupt in 2022 after allegations that the founder, Sam Bankman-Fried, and the other owners had been embezzling and misappropriating clients’ deposits.  Since 2022, there has been a growing fear from investors about using these services, as there is nothing to protect against the loss of assets in situations like the one described above.

The most common option today is to use a “hot” wallet, or an online database that keeps track of coins going in and out. Some of the more popular hot wallet options include Trust Wallet (which has nothing to do with trusts in the estate planning sense) and Coinbase Wallet.

The other option is to use a “cold” wallet, a tangible device to store keys offline. Keys in cryptocurrency are essentially passwords that allow access to the funds. As cyber-attacks on crypto-related funds and depositories increase, more people will look for cold wallet options to prevent possible loss in the event of a hack.

These two types of storage have significant differences when it comes to estate planning. For instance, most jurisdictions would likely treat the cold wallet option as tangible property. This would mean that theoretically, under Florida law, a cold wallet could be passed down to a beneficiary simply through the use of the Separate Writing Memorandum (allowed under Section 732.515 of the Florida Statutes).

Regardless of the type of storage used, any individual wishing to pass crypto down to their beneficiaries must give the key(s) for any wallets they may have to the Trustee of their Trust.

VALUE:

The IRS released guidance on April 12, 2024 directed to taxpayers who received or sold any cryptocurrencies, including non-fungible tokens and stablecoins. In this publication, the IRS warned taxpayers that in most situations any transfer of cryptocurrency is a taxable event and should be reported as such on their tax forms.

Notable exclusions to the above are:

1. Any transfer to another account/wallet owned by the same taxpayer
2. Holding (not transferring) digital assets in an account/wallet
3. Purchasing digital assets on electronic platforms using real currency (presumably Fiat money, but the IRS has not yet released an official definition)

Additionally, this IRS Notice advises taxpayers that income related to their digital assets—such as capital gains and losses—is also taxable, not just the transfer itself.

CONCLUSION:

In what may be the most lawyerly answer to the question of “What should I do to plan for my cryptocurrencies?”

Unfortunately, “It depends.” One common practice is to place cryptocurrency holdings into an LLC, which offers such advantages as anonymity and an easier manner of passing the assets to beneficiaries. Beginning in January of this year, however, most new LLCs must report information on the entity’s beneficial ownership to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). This change largely defeats the anonymity benefits that once existed with this type of planning, and so many investors are looking for new methods of holding and passing down their investments.

The cryptocurrency landscape is relatively new and growing quickly, but regulators are quickly catching up. Common IRS Forms 1040 and 1120 (for personal income tax and corporate income tax, respectively) have been updated in the last few years to include questions on virtual currency, and many more changes are surely coming.

Donald Trump, who was elected the 47th President of the United States in November, has been seen as a strong pro-crypto supporter. In July of this year, Trump led one of the biggest Bitcoin conferences to date and has vowed to keep all of the Bitcoin that the U.S. Government has seized from criminals.

If you want to stay up-to-date with the latest information on planning for your digital (and other) assets, be sure to check our Jacksonville Estate Planning Lawyer website for future updates.

If you or someone you know is looking for assistance on estate planning with respect to their digital assets, Bitcoin, Ethereum, NFTs, or any other type of blockchain-related currencies, please contact us via our online contact page for the Jacksonville Estate Planning Lawyer or call us at 904-990-8000.

The ban, which will take effect in the latter half of 2024, carves out exceptions for non-competes given to senior executives, as senior executives are seemingly in a better position to negotiate the terms of any non-compete agreement and are less likely to be subject to the ongoing harm done by non-competes that the general workforce has to face.

Non-compete agreements for non-senior executives will no longer be enforceable after the Rule’s effective date.