Medicaid exempt assets: What Federal and State Laws grant

Submitted by GarySpicuzza on Tue, 04/22/2008 - 09:19
Medicaid, the State and Federal Government program pays for health services and nursing home care for the elderly in your home. This program has been designed for individuals with low income and if you have limited assets. An added advantage of Medicaid is that it also pays for some long-term care services at home.

How would you choose long-term care?

This is an important decision that you need to make. When choosing long-term care you need to plan out your health care needs in the future. How much you would pay for such care depends on the type of policy you buy. Experts say that if you have the savings for long term care you may not consider buying a policy. But, if you do not have then maybe you could consider buying one. The cost of treating chronic illness can be expensive and this is when a policy like this can be very advantageous.

Usually, LTC recipients of Medicaid are usually those who are aged or from the disabled group, but there are only a handful who receive SSI and yet opt for LTC.

What are the assets exempted under Medicaid and LTC?

There are certain Medicaid asset exemptions made by the Federal and state laws when determining eligibility. As an applicant you would first have to use all of your assets in excess of the exempt amount in order to pay the cost of nursing care facilities before you can qualify for Medicaid. If you are married, your spouse’s assets would also be combined to determine eligibility.

The following are Medicaid exempt assets:
  • A house but only when you (the applicant) are likely to return home. Your home may also be among Medicaid exemptions if your spouse, or a child under the age of 21 years or a child over the age of 21 years but disabled, or a brother/sister owning part of the house and having resided there for at least 1 year continues to live in that house.
  • Essential items like furniture, appliances etc.
  • Personal items like jewelry, clothing etc.
  • Burial plots
  • Funds for burial up to $1500 each in case you are married and $1200 if you are a single applicant.
  • A cash surrender value in a life insurance. This is possible only when the face value of the policies together is less than $1500. However, term life insurance does not have a cash surrender value and hence is totally exempt.

Related readings:

Exempt assets from Medicaid with Long Term Care insurance. (LTCi)

There are 25 states with Long Term Care Partnership Programs.

This is significant legislation as a person can now LEGALLY exempt their assets from nursing home and Medicaid spend down by simply obtaining Long Term Care insurance.

Click HERE to read Florida Statute 409.9102.

(b) Provide a mechanism to qualify for coverage of the costs of long-term care needs under Medicaid without first being required to substantially exhaust his or her assets, including a provision for the disregard of any assets in an amount equal to the insurance benefit payments that are made to or on behalf of an individual who is a beneficiary under the program.

(4) The Department of Children and Family Services, when determining eligibility for Medicaid long-term care services for an individual who is the beneficiary of an approved long-term care partnership program policy, shall reduce the total countable assets of the individual by an amount equal to the insurance benefit payments that are made to or on behalf of the individual.

States with Partnership Legislation:

Rhode Island
New York

Posted: 28 Apr 2008 03:55 Post Subject:

Good info.Keep up the good work

Posted: 02 May 2008 10:04 Post Subject:

Add Oregon to the LTC Partnership states. They just got approved. WooHoo!

InsTeacher 8)

Posted: 30 Nov 2009 02:37 Post Subject: exempt assets

Is perf asa considered an exempt asset by medicaid and are other annuities considered exempt?

Posted: 30 Nov 2009 09:58 Post Subject:

thanks for the information - what is the asset threshold for medicaid, does it vary from state to state? Good to know what is included and not included, but would also like to know the $ amount you need to be under to qualify.

Posted: 02 Dec 2009 12:07 Post Subject:

Heidrek, since Medicaid is a state-run environment, each state has (slightly) different rules. Let me know what state you're concerned over and I can give you some specifics...

InsTeacher 8)

Posted: 10 Mar 2010 10:33 Post Subject: NJ vs PA medicaid asset protection

I have a LTC benefit of 400K, I have IRAs of 350K. Does the LTC partnership limit out of pocket expenses to nusing home to 400K? That would spend the 350K in IRAs and up to another 50K? (800K total to nursing home) Then Medicaid would kick in?

Does Pennsylvania offer more protection of assets than New Jersey?

Posted: 11 Mar 2010 06:10 Post Subject:

I have a LTC benefit of 400K, I have IRAs of 350K. Does the LTC partnership limit out of pocket expenses to nusing home to 400K? That would spend the 350K in IRAs and up to another 50K? (800K total to nursing home) Then Medicaid would kick in?

First off, I'm assuming we're still talking about a LTC Partnership Policy, so that's what I'll play with here.

First off, partnership policies must be tax-qualified and meet all of the requirements as laid out by each state, the Deficit Reduction Act and Section 7702(b) of the Internal Revenue Code. Bored yet?

Assuming the contract meets all of the metrics, here's the deal. The whole idea of partnership contracts is to deal with Medicaid paying for a person's LTC needs and protection of one's assets upon their death. Buying a partnership policy offers lots of protection here.

Your example cited a $400k LTC policy and $350,000 of assets held in IRAs. Since you didn't list any other "countable" assets, (IRAs are countable assets) we'll assume that the IRAs are all that this person owns, period. No house, no bank accounts, no car, no nothin'.

Now the need for LTC hits and the policy pays out it's max benefit of $400k and now the person looks to Medicaid to pay for his LTC needs. Medicaid is first going to determine eligibility by looking at the applicant's countable assets; those assets that will be added up to see how much the applicant owns in terms of value. Most of what people own is considered a countable asset. There are certain exceptions, but not many. When Medicaid looks at our example's assets when qualifying him for Medicaid benefits, another thing called "asset disregard" comes into play.

Asset disregard is simply this: When adding up your assets, certain assets are NOT counted, or "disregarded" in the total asset value. In terms of the partnership policy, part of what is disregarded is a dollar amount equal to the benefits paid under the private LTC partnership policy, in this case $400,000.

Here's the math: $350,000 (asset value) - $400,000 (LTC benefit) = $-50,000. In other words, the state will not count the first $400,000 of the applicant's assets...he's got a free ride into Medicaid with no......

"Estate Recovery" allowed by the state. The state, under an antique federal amendment to law (from Senator Henry Waxman out of California), is required to seek, from the dead LTC insured's estate, an amount equal to what it paid out in LTC costs for the insured through Medicaid. So, if our insured had NO partnership policy and Medicaid paid for his LTC care, they would be required to go after his assets upon his death to "recover" what Medicaid paid out in LTC costs.

Now....does this make any sense???? I just read it and I think it does, but I'm not sure.

InsTeacher 8)

Posted: 27 Mar 2010 04:40 Post Subject: cars

if my mother was to buy me a car but put it in my name how would that affect my medicaid and what are the limits that the car can be worth?

Posted: 16 Apr 2010 06:03 Post Subject: Will I will have to pay a nursing home

M mom was admitted to a nursing home in Michgian in the middle of March under Medicaid and died 2 weeks later. She had 1,250 in her checking account when she was admitted. I used $1,200 of her monies to us towards the funeral home bill. I was told that I could do this. She only had a $1,000 life insurance policy and had no other money or assets. Will I be responsible to pay the nursing home since this money was from her social security and pension which were going to be her copay if she had lived?

Posted: 21 Apr 2010 03:03 Post Subject:

It is not at all likely that you will be responsible for any of the charges, unless, of course, you do something like acknowledge responsibility for her debts.

Assuming she had little or no assets, as you describe, it would probably have been a free pass into the Medicaid system for her. Contact the nursing facility to see if they initiated a Medicaid claim on her behalf. If they did, it's their game, and you shouldn't have to worry about anything. If they didn't, they you can do that, and if she qualifies (prior to her death) Medicaid will pay the brief stay in the facility -- a few thousand dollars at most.

"Estate Recovery" allowed by the state. The state, under an antique federal amendment to law (from Senator Henry Waxman out of California), is required to seek, from the dead LTC insured's estate, an amount equal to what it paid out in LTC costs for the insured through Medicaid. So, if our insured had NO partnership policy and Medicaid paid for his LTC care, they would be required to go after his assets upon his death to "recover" what Medicaid paid out in LTC costs.

Now....does this make any sense???? I just read it and I think it does, but I'm not sure.

Oh . . . yes . . . it absolutely makes sense. Beginning at age 55, all claims paid on a person's behalf (not only LTC) by Medicaid (we call it Medi-Cal here in CA) are subject to asset recovery. Effectively, the only thing they actually go after is the decedent's home. If a surviving spouse still lives in the home, they place a lien on the property and wait till he/she dies or tries to sell, then the state swoops in and demands satisfaction of the lien. But that's not to say they cannot or don't go after any and all remaining estate assets. They will if there are any worth grabbing.

And it doesn't just happen in California, it is required in all states.

In case you're not familiar with the concept, just do a search for "Medicaid Spend-Down Test" and see how onerous this bit of crap is (Waxman's law is known as the "Spousal Impoverishment Act" -- and that's exactly what it does, it impoverishes the spouse who didn't need the LTC). Or send me a PM and I'll email you a copy of a recent CA Asset Recovery Brochure.

Posted: 26 May 2010 05:18 Post Subject: trust excludibility

what are rules re excluding trust

Posted: 26 May 2010 11:47 Post Subject:

To be able to exclude an asset from one's estate via a trust, it must be placed into some form of an "irrevocable" trust to demonstrate to the IRS that the former owner is giving up all "rights and incidents" of ownership. Doesn't mean he can't live in the property, but it's no longer "his" property.

As far as Medicaid is concerned, the "lookback" period to find assets removed from a person's estate for the possible purpose of avoiding the spend-down test, the period is now 60 months. For estate tax purposes, the lookback period is only 36 months.

Posted: 27 May 2010 04:14 Post Subject: death in nursing home

If a person lived and died in nursing home and had life insurance with named beneficaries. Are the benefits from the policy to be returned to the state?

Posted: 27 May 2010 08:27 Post Subject:

Proceeds payable to a named beneficiary are not subject to the claims of creditors of the decedent, nor are they subject to claims of the beneficiary's creditors prior to funds being distributed to the beneficiary.

However, if policy proceeds end up in the decedent's estate, the state is third in line, behind employees (wages) and the federal government (taxes, penalties), to attack the estate for Medicaid asset recovery in addition to its own unpaid taxes and penalties.


Posted: 03 Jun 2010 06:46 Post Subject: ASSETS


Posted: 03 Jun 2010 06:51 Post Subject:


Posted: 03 Jun 2010 07:15 Post Subject:


Never heard of this before. A lien on the property perhaps, but I doubt the state has a right to take possession of one's home while living. Something unconstitutional lurking in there. But, then again, I'm not from Missouri, so you'd have to show me, too.


Does this mean that a once-living Medicaid beneficiary has died, and the property is being claimed under the Asset Recovery laws? If for some reason the state has in fact taken possession of the property (meaning land and structures), it is unlikely that personal property would be confiscated. But the "asset recovery" laws do not go far in describing exempt assets, so if the real estate property is not valuable enough to satisfy the state's claim, it could then turn to other non-excluded assets, which could mean certain things of value inside the home.

For further explanation, you would want to look at the list of "excudable assets" under the Medicaid spend down test. Things like personal jewelry, one car, business assets . . .

Posted: 14 Jun 2010 07:33 Post Subject: Is term life insurance considered an asset

My Mom recently passed away after a brief illness. She had Medicaid and Medicare. I just received a letter from State of NJ for a claim and lein against the assets of my Mom.
I have to fill out a 5 questionaire letter, should her Term Life insurance be added in her assets along with bank account balance?

Posted: 16 Jun 2010 04:44 Post Subject:

Life insurance proceeds are not subject to asset recovery if payable to a named beneficiary, but become part of the estate cash assets if there was no named beneficiary. The claim against her estate for Medicaid payments by the state of New Jersey is limited to the value of benefits received after age 55.

If there are sufficient cash assets in the estate, the state has a legitimate claim to them. If there are insufficient cash assets, the state can also claim hard assets such as a home or auto -- but not in excess of the actual benefits received. Personal assets such as jewelry are exempt from asset recovery.

Anyone can offer to pay the state the amount of the lien in lieu of the state seizure of estate assets. Family members (or others) could combine their personal resources to pay the state's claim and later file a claim for reimbursement with the administrator of her estate during probate. This would allow for a more orderly liquidation of estate assets and probably provide a better benefit to the estate.

Be sure to carefully review and evaluate the state's claim. An authorized representative of the estate can obtain access to medical billing records if they cannot be located among your mother's effects. You may also be able to negotiate a settlement with the state for less than the lien amount, but you will not be able to escape the lien entirely, because it is mandated under federal Medicaid rules.

There is no claim/lien against the estate for Medicare payments.

Posted: 25 Jun 2010 02:12 Post Subject: Medicaid Eligibility (Spend Down)

My father (aged 87) has been in a rehabilitation facility for a few months and was originally classified as requiring "skilled care" which meant he was covered by Medicare and his private supplemental insurance. As of a couple of weeks ago, he is no longer considred requiring "skilled care" and therefore is not covered by Medicare and his supplemental insurance. Since he suffers from dementia, seizures and kidney problems, he is unable to care for himself and my mother (aged 83) is unable to care for him at home. He has been denied by Medicaid because of a life insurance policy that has a face amount of $12,000 and a cash surrender value of $6,700. We have been told that if he takes the cash value of the policy he can only spend-down $3,500 for burial which would leave him still above the $2,000 countable resource limit for Medicaid. The cost for him to remain at the facility is $6,000 a month, which we can not pay. What can we possibly do to get him eligible for Medicaid?

Posted: 25 Jun 2010 03:37 Post Subject:

Unfortunately, life insurance cash value IS countable as a spendable asset under Medicaid rules. To qualify for Medicaid, one must meet the spenddown test, and the confined person must have assets no more than about $2000, as you indicate.

The only choice is to meet the spenddown test. You do not have to surrender the life policy, but must use the cash value to pay for the needs of your father.

So, take have him take the $6700 as a policy loan, pay his nursing home cost for the one month, leaving him with $700 in assets (assuming there is nothing else in his "countable" assets). Voila! Qualification for Medicaid is probably met, there will still be $5300, less accruing interest in life insurance proceeds at death.

Understand that all Medicaid payments will become a lien against his estate. If life insurance proceeds, however meager, are payable to the estate, although the mortuary would have a claim for burial expenses, the state's claim could interfere.

JUST MAKE SURE THERE IS A NAMED BENEFICIARY!! That way the money will not be available to the state and could be used to pay some of the funeral expense without hindrance.

The complicating matter is your father's dementia. It could be difficult to maintain that he understood what he was doing when signing a policy loan request. If he is the owner of the policy (most likely), and he cannot sign the request due to legal incapacity, this could be a huge problem regarding both Medicaid and beneficiary.

A court order as conservator allows that person to administer the affairs of an incapacitated person, but the contract of insurance is inviolable. The court order cannot change the relationship between owner and insurer. A conservator is unlikely to be able to persuade the insurer to alter the contract (new beneficiary) or allow a loan.

For all who read this post, this is a testimony to the power of independence available through LONG TERM CARE INSURANCE which would have avoided all of this turmoil.

With all due respect to MRH and his/her father, who are innocent pawns in the grand scheme of things, THE MORAL OF THE STORY: If you believe the Government has a plan to take care of you in your old age -- Social Security, Medicare, Medicaid, or Obamacare -- you may already be suffering from dementia.

Posted: 27 Jul 2010 05:22 Post Subject: medicaid and life insurance

I am getting conflicting answers.Life ins. must not exceed $1500 face value or $1500 in death benefits. MR

Posted: 27 Jul 2010 08:07 Post Subject:

It really doesn't matter what the face value (or death benefit) of the life insurance is, because that money is only available to the insured's beneficiary after the insured dies. Cash value is something else.

If there is CASH VALUE in a life policy, Medicaid (Medi-Cal in California), can force the cash to be borrowed and "spent down" so that the total assets of the Medicaid recipient fall at or below the required limit of $2000. So, to that extent, the Medicaid rules generally require that the cash value in excess of $1500 is a "countable asset" which would be added to all other countable resources of the recipient and spouse that are subject to the spend down test. The policy could have a face amount of $1,000,000, but if the cash value is below $1500, it's not a countable asset.

If the liquidation of other assets, prior to removing the life insurance cash value, gets the remainder below the threshold, the life insurance may not have to be touched at all. Mostly depends on the actual amount of CV in the policy. It it's low, not a problem. If it's substantial, it could be a stumbling block. If it's more than $2,000, it will have to be spent down to at least that point.

And you cannot use policy assignment to another party as a way to avoid the spend down test, unless the policy ownership was transferred at least 60 months ago, if the transfer occurred after February 8, 2006.

Transfers of any assets within the 60 month look back period for the purpose of avoiding the spend down test subject the recipient to a penalty. There are only limited transfer privileges that escape both the look back and the penalty.

The maximum assets that a community spouse may have is one half of the couple's total assets but not more than $109,560 in 2010. The actual rules for Medicaid spend down vary by state, so to try to give more definitive information could be misleading.

Posted: 30 Jul 2010 06:55 Post Subject: Recovery excemptions

I was recently told that since my Mother has 2 disabled children, Medicaid would not ever proceed with recovery of her equity in home or other assets as well. Is that correct? Is this a new rule?

So can she have assets in her name that exceed the normal thresholds due to these disabled children.

One was a dependent, disabled child that lived with her all her life. He now lives with one of her other children, as she is in a nursing home.

Posted: 30 Jul 2010 08:52 Post Subject:

since my Mother has 2 disabled children, Medicaid would not ever proceed with recovery of her equity in home or other assets as well. Is that correct? Is this a new rule?

This is neither a rule, nor new. The estate of any person age 55 or older receiving LTC benefits courtesy of Medicaid will be subject to asset recovery following their death. The home is "protected" for a surviving spouse or disabled child, but only as long as he/she resides in the home -- but the rule only applies if the individual has "an equity interest" (i.e., is a joint owner with right of survivorship [aka: joint tenants, tenants in common]). Upon the sale of the property, the lien is recoverable, regardless.

He now lives with one of her other children, as she is in a nursing home.

This may be problem, since the disabled child does not reside in the home. To exempt the home as a countable asset from the spenddown test, state rules apply. There are two possibilities.

In some states, the home will not be considered a countable asset for Medicaid eligibility purposes as long as the nursing home resident intends to return home; in other states, the nursing home resident must prove a likelihood of returning home

If your mother will not be capable of returning home, or has no intent to do so should she no longer need the nursing facility, it will not be exempt, unless her spouse or dependent child still resides there. Apparently that is no longer the case. In such cases, only $500,000 (can be raised by the state to $750,000) of the equity is protected from the spenddown requirement.

One possibility exists: to avoid the recovery of her home by the state, or forced spenddown of excess equity, the home may be placed in a trust for the benefit of the disabled child(ren). That transfer is exempt from the Medicaid look back rules.

So can she have assets in her name that exceed the normal thresholds due to these disabled children.

No. That is not a criteria of the spenddown test. To qualify for Medicaid, she must meet the spenddown requirement, period, subject to the rules pertaining to countable and exempt assets.


This is a lesson in estate planning and the need for long-term care insurance.

Posted: 08 Sep 2010 10:37 Post Subject: whole life ins nursing home MISSOURI SOCIAL SERVICES

Mom in a nursing home, they found she has a whole life ins with a cash surrender value of $2741. now they want us to call MISSOURI SOCIAL SERVICES. what can I do ?

Posted: 21 Sep 2010 05:36 Post Subject: assest spend down

My mom is in the nursng home with alzheimers. I (her only son) have to spend down about 4,500.00 on items that will benefit her so she can continue to be qualified for Medicaid. Can you give me examples of what qualifies as items that will benefit her?

Posted: 22 Sep 2010 12:23 Post Subject:

Nursing home board and care, physical and occupational therapy, direct medical expenses, transportation expenses, and prescription medications are just a few of the qualifying expenses. What you cannot spend money on is stuff like vacations, gambling, gifts to others, etc.

The spenddown test is a monthly thing. So if mom has continuing retirement income, it must be used each month except for a $35 allowance for personal expenses. The purpose is to force "share of cost" expenditures so that the government is not footing the entire bill unnecessarily.

Understand, however, that every dollar the government spends courtesy of Medicaid is a dollar of asset recovery the government forces the state to go after following mom's death. Mom's home and other assets in her name at death can be seized to repay the debt owed, unless dad or a disabled child still resides there. The lien endures without interest until the asset may be seized.

Posted: 15 Oct 2010 03:23 Post Subject:

is a spouse's IRA consistered and asset for a medicaid applicant

Posted: 15 Oct 2010 06:21 Post Subject:

Not the invested money, but distributions, including any Required Minimum Distributions, are a countable asset in the month received, and must be spent down as part of the "community" spouse's "allowance" each month.

Yes, it sucks! But that's our government at work.

Posted: 28 Oct 2010 02:35 Post Subject: Anniversary Ring

Dad is on Medicaid and lives in a nursing home here in Portland. Mom is living by herself at her own home. My sister is in an adversarial position within the family and is dad's guardian and conservator for dad. My brother, myself, mom and dad fought her becoming guardian but she was granted guardianship by the judge. Mom gave dad a ring for their 50th anniversary (they are now married 63 years). My sister has taken the ring from dad and won't give it back to mom because she claims that she is "protecting one of dad's assets". Mom would like the ring back, has requested to have the ring and is willing to sign a voucher for receipt of the ring. Can we get the ring back for mom, and how might we approach that?

Posted: 29 Oct 2010 12:55 Post Subject:

Can't imagine the family put on such a weak case that Sis ended up as guardian. Since this started in court, it will have to end in court. You need a MUCH BETTER lawyer than you had before and you need to fight to change the guardian, or at least get a court order to force Sis to divest of the ring.

This will be messy, expensive, and divisive. Although it sounds like the divisive part has already been taken care of.

After 63 years of marriage, I'm guessing Mom and Dad are well into their 80s. Most judges would not be so dispassionate that they would reject Mom's request to have the ring back. Problem is, Sis may have "safeguarded" Dad's assets into someone else's hands for cash that she has absconded with. And if the cash is long gone, so is Dad's ring.

I don't envy your situation.

Posted: 29 Oct 2010 05:42 Post Subject: commision allowed for estate sale?

My husband is his mothers P.O.A. and just sold her house to pay for her nursing home costs. We were told that he is allowed a percentage of the house sale for handling all the details of the sale. Does anyone k.ow anything about the rules on this?

Posted: 31 Oct 2010 04:16 Post Subject:

It may be governed under your state's laws. In California, something along this line would be found in the Welfare & Institutions Code. After a person's death, information would be found in the Probate Code.

It's unfortunate that your husband chose to sell his mother's home now. She would probably have qualified for Medicaid assistance in paying the institutional costs, even though it's kind of a wash. Selling the home in the future, even by only a year, might have given enough time to begin to swing the pendulum back to the prosperity side.

Posted: 04 Nov 2010 04:46 Post Subject:

I live in ga. Are prepaid buriel expenses exempt up to $10,000 under medicaid

Is you home exempt up to $500,000.

Posted: 04 Nov 2010 06:09 Post Subject:

The home is exempt from the SPEND DOWN test in order to qualify for benefits if the person applying for benefits "intends to return to the home" after his disability is resolved AND the equity in the home is less than $500,000 (up to $750,000 in some states). Obviously, some people will never return home, even though it is their "stated intent." Medicaid is not entirely concerned about that.

However, every dollar of benefits paid by Medicaid on behalf of a person age 55 or older is recoverable following the person's death. They can put a lien against the home to satisfy the debt owed to Uncle Sam. They will not attempt to collect as long as a spouse or minor child of the decedent continues to reside in the home.

Burial expense contracts are exempt as long as the contract is IRREVOCABLE (proceeds usually payable to the mortuary/cemetery). Up to $1500 in a cash burial account is also exempt.

Posted: 11 Jan 2011 08:01 Post Subject: Medicaid exemptions

In October, 2010, my mother was given a Social Security retro benefit of about $3000 from 1982 to 9/2010. I understood that this was not counted within her assets so long as she spent it within a year. It looks like Medicaid did count it, but I would like to find out where in the rules it says that it didn't count. Help please!

Posted: 12 Jan 2011 02:34 Post Subject:

In October, 2010, my mother was given a Social Security retro benefit of about $3000 from 1982 to 9/2010. I understood that this was not counted within her assets so long as she spent it within a year

Where did you get this "understanding" from? Medicaid looks at INCOME from all sources, including Social Security (even though Medicaid is funded itself with Social Security dollars). A retroactive payment of $3000 (for 28 years? what kind of ridiculous payment is that? -- did they underpay her by $8 per month in all those years? -- makes no sense to me) is "current income" above and beyond the $35 monthly allowance, and, as far as I know, must be counted toward fulfilling the spenddown requirement.

If someone from the Social Security Administration told you/your mother that the money would not count toward the spenddown test, then have someone in the SSA provide the documentation to you.[/quote]

Posted: 17 Jan 2011 04:00 Post Subject: Exempt Personal Property For Medicaid

Can expensive jewelry and antique furniture be used as a way to preserve assets so that they don't fall into the medicaid non exempt catagory and thus qualify for medicaid but still allow something of value to pass to heirs?

Posted: 17 Jan 2011 09:08 Post Subject:

"Personal jewelry" (wedding rings, similar items) are exempt from the spenddown test, most other jewelry is not. Furniture and antiques definitely are not exempt property. If you want to preserve assets outside the estate, they must be properly placed in a trust at least 60 MONTHS prior to an application for benefits under Medicaid. Anything less than 60 months, and the whole plan fails.

Posted: 28 Jan 2011 05:43 Post Subject: exemptions

Are Varriable Annuities exempt from cash that is claimed on Medicade?

Posted: 30 Jan 2011 12:49 Post Subject:

Are Varriable Annuities exempt from cash that is claimed on Medicade?

Annuities -- variable or otherwise -- are ONLY exempt from the countable assets if they have been annuitized or are holding qualified plan (IRA/401(k)/403(b)) assets. The cash value in any insurance contract is a countable asset except for $1500 for burial expenses.

If an annuity has been annuitized, the periodic income must be spent down as part of the "share of cost" formula that permits the Medicaid beneficiary a $35 monthly allowance.

If an insurance agent sold you an annuity with the understanding that it would protect the assets from the spend down test, you may be able to void that contract and obtain a full refund of all premiums paid.

Posted: 01 Feb 2011 06:48 Post Subject: auto purchase before applying for medicaid

Can my mother buy me car to visit her in her nursing home? Will that be considered a noncountable asset when she applys for medicaid? Does the car and insurance need to be in her name or could it be mine.

Thank you

Posted: 01 Feb 2011 10:52 Post Subject:

Can my mother buy me car to visit her in her nursing home?

As long as you don't use the car for any other purpose.

Seriously? Are you unable to provide your own transportation to visit your mother in a nursing home? This almost sounds like what we call in California ELDER FINANCIAL ABUSE.

Your mother may buy a car in her name and allow you to use it. She is allowed to keep one vehicle in her "noncountable assets" column. The value of all other vehicles she owns will be included in her "countable assets" and subject to the spend down test. She can keep the Lamborghini in her noncountable assets, and your new Kia will be in the countable column.

If she buys a car for you as a gift, the value of the gift in excess of $13,000 creates a GIFT TAX LIABILITY for your mother, and the entire purchase price of the vehicle could be viewed as an unlawful attempt to qualify for Medicaid (gifts within 60 months of application), resulting in the need to spend down an equivalent amount of cash assets (that she may not have) in order to qualify for Medicaid.

So do the right thing. Buy your own car and visit your mother at least five times a week in the nursing home.

Or, better yet, take care of your mother in her old age, like she did for you as an infant. The services are about the same, only she's a lot larger as an adult than you were as a child, so it requires a bit more effort on your part.

Payback's a b****! :roll:

Posted: 24 Mar 2011 04:26 Post Subject: Medicaid

I have a family of 8 and I keep getting denied for medicaid. I have 2 children that are constitly sick and are supposed to be seeing specialists I also have a chronic illness but do not qualify for any help. Now my youngest daughter has medicaid because she is only 3 yrs. old. My husband is the only one that works and I receive back child support payments. My husbands monthly income is $1,920.00 before taxes and what he brings home is about $1,600.00 after taxes. My child support is $359.96 a month. Our monthly bills exceed our income and we are behind on our mortgage. Why don't we qualify for medicaid if we don't have any cash on hand or in the bank? Is it because we are buying a house? What am I supposed to do if I don't have the money to get them medical treatment and the care that they need. I am fed up with this government bull****.

Posted: 29 Mar 2011 05:16 Post Subject: property

do you have to surrender your home for medical pmt back to medicaid

Posted: 29 Mar 2011 05:22 Post Subject: income guidelines

how much income is accountable to parents medicaid qualification. I work with a women who make approx $300 a week, she gets $500 a month child support for 2 children, their estranged father makes 0ver $900 a week clear after taxes and childsupport garnishment and their children are on MC+

Posted: 22 Apr 2011 12:32 Post Subject: a TIAA-Cref TIAA account, is it countable?

If one is taking funds out of TIAA-Cref traditional account via 10 payments over 9 years, with that being the only way one can access the founds, is the money remaining in the account a countable asset after say the third paymant?

Posted: 26 Apr 2011 08:25 Post Subject: reverse mortgage lenders

Medicaid is a helth and nursing program paid by state goverment. I really got more benefit by this article by studing this.

Posted: 28 Apr 2011 07:34 Post Subject:

I have a family of 8 and I keep getting denied for medicaid.

Sorry . . . did not see this post prior to now.

There is something dreadfully wrong if the circumstances are as you state. There is always an administrative appeals process for claims/eligibility denials. There are public advocates who can assist you with this process at no cost in most places.

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