Medicaid Asset Requirements

Exempt vs. Countable Assets

Medicaid separates an individual's assets between exempt and countable. While countable assets count toward the asset limitations, exempt assets do not. Here are some of the most common countable and exempt assets.

Exempt Assets

Your home
One vehicle
Personal property and household items
Funeral expense trusts of $15,000 or less (in most states)
Life insurance policies below $1,500 (in most states)

Countable Assets

Most annuities
Cash and bank accounts
Investments, stocks, and bonds
Additional homes, vehicles, and land
Life insurance policies exceeding $1,500 (in most states)

What About Retirement Accounts?

In most states, retirement accounts are considered a countable asset for Medicaid purposes. However, some states exempt retirement accounts owned by the healthy spouse or either spouse. Your attorney will be able to advise based on how these accounts are handled in your state.

Spending Down Assets

The reason most people don't qualify for Medicaid is they have too many countable assets. A key part of the Medicaid planning process is spending down these assets with the help of an elder law attorney.

Even if you or your loved one have a small amount of savings left to protect, Medicaid planning can help you age with dignity and escape the financial devastation of long-term care.