If you want to be eligible for Medicaid. You have to meet the asset requirements. Often, you have to limit the total value of your assets. Otherwise, you’re deemed ineligible. But before you start offloading your assets. It’s important to understand that having certain assets is okay. If you’re wondering what you’re allowed to have. You can qualify for Medicaid with these assets still in your possession.
Qualify for Medicaid with These Assets
In many cases, you can keep your primary residence and still qualify for Medicaid. However, you may only be allowed to have a certain amount of equity.
Rules about equity on primary residences do vary by state. The limits are defined at the state level. Thus, allowing them to take into account home values in their region. Most states do have a limit, though not all do. As a result, you’ll want to research the restrictions based on where you live to see if your property is exempt.
Generally, you’re permitted to have one working vehicle – such as a car or SUV – without having to worry about it impacting your Medicaid eligibility. It essentially allows Medicaid users have access to personal transportation without an undue penalty that could make them ineligible for coverage. As long as the car is used by you or for transporting you. Then, you’re likely able to keep it.
The only exception may be a high-value vehicle that’s considered an investment. If you have an exotic, antique, or similar vehicle. It’s wise to check to see if it’s regarded as a countable asset in advance.
Non-Refundable Funeral or Burial Funds
If you decide to pre-pay your funeral or burial expenses and the money is non-refundable. The value of that purchase is exempt. If you’re using an irrevocable funeral trust (IFT) instead, the account may be exempt depending on its value. However, the limits to an IFTs value can vary by state, so you’ll want to research that to determine where the line sits in your area.
Term Life Insurance
When Medicaid factors in life insurance policies to determine eligibility, it’s only concerned with the cash value for the applicant. As a result, term life policies aren’t viewed as assets in the eyes of Medicaid, as they don’t have built-in cash value.
Generally, personal possessions like clothing, furniture, kitchen appliances, and similar items aren’t viewed as assets. Instead, they facilitate daily living, so they are considered exempt.
There can be exceptions for certain kinds of property that may be viewed as more of an investment. For example, certain types of art, collections, or jewelry may be considered an investment instead of a personal possession. If you’re concerned about where your items fall, it’s wise to research rules in your area in advance.
Do you know of any other assets people can keep and still qualify for Medicaid? Did you apply for Medicaid only to have trouble because of your assets? Share your thoughts in the comments below.
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