Medicaid Asset Requirements
A comprehensive look at Medicaid's asset limitations
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.
- 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)
- 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.