Homestead Equity Uses for the Elderly
Portia B. Scott, J.D., L.L.M. • September 22, 2025

For many families, the home is the single asset with the most value. I understand that financial planners do not like to include the equity in the home when making determinations of wealth, but sometimes it is worth considering.


Three questions and accompanying scenarios especially come to mind for the Elder Law practitioner.


First, how can a client use the equity in the home to fulfill the client's desire to age in place?


Second, does the client need to spend all of the home's value before Medicaid will help when moving into long term care?

Third, what, if anything, can be left by the client for the children once the client is gone?


In Florida, the answers are as follow.


If the client has significant equity in the client's home, a Home Equity Line of Credit ("HELOC") or a Reverse Mortgage are options to be considered.


The differences between the two are that a HELOC tends to be less expensive way of accessing the equity in the home, at least initially, but does require monthly repayments to be made on the loan. So, the borrower witl need to include some repayment in the monthly household budget.


The borrower has greater options about where the borrower lives. For instance, if the borrower chooses to go live in an assisted living facility, as long as the HELOC is being repaid, there is no issue. This means, among other things, the borrower could rent the property out and use the net proceeds to pay the HELOC. (There are other issues this would bring up including those regarding homestead, however.)


A Reverse Mortgage, on the other hand, tends to be more expensive (typically higher interest rates and, often, origination expenses) but does not have to be paid back until the borrower dies or otherwise stops living in the home. This means that if the borrower wants to live at home, the borrower can use the equity to pay for household expenses, taxes, home health aides or companions, lawn care and any other duties the borrower can not, or maybe just does not want to, perform.


Does the dient need to spend all of the home's value before Medicaid will help with long term care? Not in Florida, no.


In 2025 if a single persons owns a home with less than $730,000.00 in equity and that person need Medicaid to help with long term care bills (nursing home), as long as the patient otherwise meets Medicaid requirements, the patient may keep their home. When the person passes away, the family can inherit the home without worrying about that particular asset being subject to Medicaid State Estate Recovery ("claw back"). With the right plan in place, the last, possibly most valuable asset of the nursing home patient, the client can create the legacy for the children after the patient is gone.


More than $730,000.00 in equity? Maybe the client can borrow against the house and use the funds (not gifting the funds) thereby lowering the actual equity down to below $730,000.00? Buying a more expensive car, putting on that new roof the insurance company is going to require soon anyway, upgrading to impact windows, remodeling the kitchen with all new appliances and flooring throughout, taking a trip to see loved ones, paying estimated future income taxes: all of these are ways to spend that "excess" equity.


For a married couple when one of them is in a nursing home and the other is not and remains in the community, this community spouse does not have to spend down any of the equity of the house the couple owns.



Finally, if a homestead is left to someone who is descended from the homeowner's grandparent (l know, it is a long way to say blood relative), the home can be left to such a person without having to pay Medicaid any of the asset the homestead represents. Further, because of the "stepped up" basis in the house, leaving a home can truly create a way of ensuring an inheritance which many people consider very valuable indeed.


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Gloves are Off!

By Portial B. Scott, J.D.,L.L.M. • May 31, 2026
Appellate Gloves Are Off: Warnings Appear to Be Over with Our Courts Over Unverified Artificial Intelligence Arguments and Filings This is the third straight article I have written on this topic - but things keep moving and changing. In my first two articles on this topic (the use of Al in Court filings), I explained that our appellate Court (the "4th") has been issuing warnings about the use of Artificial Intelligence in drafting and filing papers with the Court if the Al is not double-checked against reality. In those articles, I explained that the 4th was giving warning after warning against filing unauthenticated Al-generated motions, petitions, appeals, complaints, briefs, memoranda of law. Now, in three separate rulings on May 27, 2026, the 4th has stopped issuing warnings and has started imposing sanctions and, for attorneys, referrals to the Florida Bar for disciplinary action. In the first case,a self-represented litigant was found to have abused the courts. by filing some 90 Al-generated motions against his former wife. The 4th observed that the arguments made in his appeal to the 4th were not based on actual cases, rules of procedure or, if they were actual cases, such arguments were not found in those cases. As a self-represented litigant, the 4th cannot refer him to the bar for discipline. So, what can the 4th do? They can prohibit him from being able to file any more papers in our courts without having a Florida Bar -licensed attorney sign off on the papers. This is a drastic sanction since access to the Courts is of such high value in America. We want people to have access to the Courts - so they don't settle their disputes at high noon in the middle of the street with firearms or have it out with brawls. The idea behind requiring such sanctions is that an attorney will think twice before endangering their right to practice law. The attorney requirement is expensive, too. Still, when a litigant abuses the courts system, there must be some way to safeguard the integrity of the Court. The idea of an attorney cherishing their rights to practice, however, may not always be 100% accurate. (See below) The second case involved an attorney who filed an "emergency" motion, citing cases which do not stand for the concept of what the attorney claimed. By way of example of what I mean, if the attorney claimed that Roe v. Wade stands for the proposition that income tax is unconstitutional, that would be claiming something that just is not so. Importantly, it is verifiably not so. One need only look at the Roe v. Wade decision to see it is not correct. The 4th said that, whether the case is misrepresented as meaning something it does not or even does not exist at all, it does not matter. Both are equally wrong. The attorney was reported to the Florida Bar for disciplinary inquest. in the third case, an attorney filed a brief which included references to what has happened at trial and quoted from the transcript of the trial. However, since appeals ususally have to have a copy of the transcript included when the appeal is filed (so the 4th can read what actually happened and not just take the filer's word for it), it soon became obvious that what the attorney said had been said in Court was not true. This might have been a result of poor prompting by the attorney to the Al or intentionally misdirecting the Al. It also could be that the transcript of the trial was fed to Al and Al misunderstood what had happened - due to not understanding fully the meaning of certain legal terms. On top of that, Al also "hallucinated" legal authority and the attorney filed it with the 4th, even apparently invoking some of it in oral argument before the 4th, doubling his sins. In the end, how it happened did not matter. The 4th found that the lawyer cited imaginary legal authorities as if they were law and the 4th reported him to the Florida Bar for discipline action, putting his law license in jeopardy.  I want to make it clear: the 4th does not prohibit the use of Al in filings, but everyone must ensure that the citations to legal authority, the statement of the facts and all manner of statements are accurate, real and not the figments of Al's desire to provide a winning argument at the cost of truth.

And furthermore....

By Portia B. Scott, J.D.,L.L.M. • April 2, 2026
Another Warning from our Appellate Court Regarding Al I hate to repeat myself, but.... The March 25, 2026 release of written opinions from our own Fourth District Court of Appeal (4th DCA) has another warning to persons venturing into the Court system. As you may know, I wrote about a warning from the 4th DCA about a self- represented Appellant (person seeking to have the trial court's decision overturned) using Al and the possible, but not inflicted, sanctions which could have resulted. Now, again, in Gouveia v. Meridian Financial Investments, LLC, the 4th DCA has again written to address this increasingly abusive use of Al in the Courts. In this more recent case, there was a contract dispute and the trial court ruled in favor of the Plaintiff (the party making the complaint...get it? "Plaint-iff" based on "Com-Plaint?"). The losing side filed an appeal, asking for the 4th DCA to overturn the decision of the trial court. Well, that went nowhere and the Plaintiff kept its win. The story here is that the person who lost at trial and on appeal, in his case and appeal to the 4th DCA apparently used Al to help write his argument. The Al manufactured ("hallucinated") prior cases which did not exist or, if they did exist, did not stand for what the person said it did. It would be as if the person made reference to Roe v. Wade (a case which does exist) and told the appeals court that it stood for the legal principal that a Jack of Spades has a higher value in poker than the King of Spades (which is absolutely not what Roe v. Wade said). Is that straight-up nonsense? Yes and as absurd as that which was submitted to the appeals court as if it were true. The Court issued another warning about the possibilities of sanctions if it is done again by the person submitting it, just like before. But, as the concurring opinion in this case points out something else (a "concurring opinion" is a written opinion which agrees with the actual opinion but has more to say). The concurring opinion points out how meaningless it is to threaten sanctions against someone who will most likely not be before the Court again. That means that the opportunity to misbehave for this person is greatly reduced. Most self-represented folks only appear once -if at all- before the appellate court. The concurring opinion said that with attorneys, it is not a problem as sanctions will work against us, seeing how we are in court so often. What is the solution? The writer of the concurring opinion doesn't know but suggests some pro-active steps. (Sanctions are, by their very nature, reactive - they are issued in response to something done.) Perhaps forcing sworn statements from the parties that they have not used Al or, if they have, exactly what the Al included; that the party submitting the Al- generated document has double-checked the sources. Something which can help us all work with the rising tide of Al, Chatbots, LLM tools.  Stay tuned!