The Ward's Homestead in a Florida Guardianship: Can It Be Rented or Sold?

Beverly's House and the Question Her Son Is Facing

Beverly is 85 and lives in a nursing home in South Daytona. (Beverly is a composite I use to illustrate a pattern I see often in guardianship matters, not an actual client.) Her son Mark was appointed her guardian of the property after a judge found her incapacitated to manage her financial affairs. Beverly's care costs more each month than her Social Security and small pension bring in, and her house sits empty. Mark has a simple question: can he rent out Mom's homestead to help cover the bills, and does having a guardian change how Florida protects that house in the first place?

Guardianship in Florida is a court process under Chapter 744 of the Florida Statutes, used when a judge determines a person is incapacitated and less restrictive tools will not work. This piece assumes a guardianship is already in place and focuses narrowly on what happens to the ward's homestead once it is.

Does Becoming a Ward Strip the Homestead of Its Protection?

No. Florida's homestead protection comes from the state Constitution, not from the owner's competency. A house that qualifies as homestead keeps its protection from most creditors' claims whether the owner is fully capable, incapacitated, or under guardianship. Appointing a guardian of the property does not convert the home into a general asset that creditors can suddenly reach, and it does not by itself change who owns the house. Beverly still owns her home. Mark simply has court-supervised authority to manage it on her behalf.

The harder question, and the one families actually run into, is not creditor protection. It is the property tax exemption and what happens if the house is rented or sold while Beverly is in care.

Does Moving to a Nursing Home End the Tax Exemption?

Moving into a nursing home does not automatically end a Florida homestead tax exemption. What matters to the property appraiser is intent to return. If the home is kept ready for the owner, the utilities stay connected, someone maintains it, and the family can show the move is for care rather than a permanent change of residence, the exemption can generally continue even though the owner is not physically living there.

That intent-to-return analysis gets much harder once the property starts generating rental income. Renting out a homestead, even to cover legitimate care costs, is one of the most common ways families accidentally undermine the exemption, because a rented house starts to look less like a residence the owner intends to return to and more like an income property. Any decision to rent should include a conversation with the county property appraiser's office about how that particular county will treat the exemption going forward, since outcomes can turn on the specific facts.

Can Mark Actually Rent Beverly's House?

Not on his own signature. A guardian of the property needs the court's prior approval before leasing, selling, or mortgaging the ward's real estate, and that rule applies to homestead property just as it applies to any other asset in the guardianship estate. Mark cannot simply put a sign in the yard because he believes it is a good idea. He has to file a petition asking the court to authorize the lease, explain why renting is in Beverly's best interest, and typically show that the property would be rented at fair market rent with a plan for who manages it and where the income goes.

• The guardian must petition the court before signing any lease of the ward's home.
• The court will weigh whether rental income truly benefits the ward, given the tradeoff with the tax exemption.
• If Beverly is on or applying for Medicaid, any rental income becomes countable income to her, which can affect her eligibility or the amount she must contribute to her cost of care.
• A guardian must act in good faith and preserve the ward's property, a standard the court will apply directly to any rental decision.

Selling, Keeping, or a Lady Bird Deed: What Are Mark's Real Options?

Once a family is looking at ongoing nursing home costs, three paths tend to come up for a ward's homestead.

• Keep it and let it sit vacant. This preserves the intent-to-return argument for the tax exemption most cleanly, but it does nothing to generate income and the family still bears taxes, insurance, and upkeep.
• Rent it with court approval. This can produce income to help pay for care, but risks the tax exemption and adds countable income that may affect Medicaid eligibility, as described above.
• Sell it, again with court approval. Selling converts the homestead into cash, which changes how the asset is treated for Medicaid purposes (the home is generally exempt from Medicaid's asset limit; sale proceeds are not) and ends the tax exemption discussion entirely. This is a significant, often irreversible decision the court will scrutinize closely.

Some guardianship attorneys will also raise the possibility of a lady bird deed, an enhanced life estate deed that lets the ward's home pass to a chosen beneficiary at death while the ward retains full use and control during life, without probate. A guardian who wants to execute one on the ward's behalf still needs court authorization, since it is a transfer of an interest in the ward's real property. Whether it makes sense for a particular ward depends on the whole estate and Medicaid picture, and it is worth discussing directly with a Florida attorney rather than assuming it applies.

What Happened With Beverly's House

In Beverly's situation, Mark ultimately petitioned the court not to rent the home but to keep it as is for the time being, while the family evaluated whether Beverly's stay would be temporary or permanent. The court wanted to see a realistic plan, current insurance, and confirmation that the home was not sitting in disrepair. Mark also asked his attorney about a lady bird deed so that the house would pass smoothly to Beverly's children without probate if she never returned, while preserving her homestead protection during her lifetime. Every family's facts are different, and whether renting, selling, or a lady bird deed is the right move depends on the ward's finances, her Medicaid status, and how likely a return home really is.

This article is for general informational purposes only and does not constitute legal advice, nor does reading it create an attorney-client relationship. Florida estate, elder, probate, and real estate law are fact-specific and change over time. Consult a licensed Florida attorney about your individual circumstances. Arthur Simpson, Esq. is licensed to practice law in the State of Florida. Attorney advertising.