There are differences between exempt and nonexempt assets when it comes to applying for Medicaid. Understanding the distinction between exempt and nonexempt assets can make the difference between spending and saving tens of thousands of dollars.
What does it mean for an asset to be exempt?
An exempt asset does not count against your Medicaid asset limitation. A nonexempt asset does count against your Medicaid asset limitation. That distinction sounds simple, but it can make a huge difference.
What assets are not exempt?
The following is a list of some, but not all, assets that are nonexempt for the purposes of qualifying for Medicaid.
- Stocks and bonds
- Accounts receivable
- Value of a family home whose value is greater than $500,000
- Second home or vacation home
- Multiple vehicles
What assets are exempt for purposes of Medicaid eligibility?
The following assets are exempted from consideration when determining your Medicaid eligibility. As before, this is not an all-inclusive list. For that, contact our firm for a free consultation.
- Value of a family home under $500,000
- Some rental property
- One vehicle
- Some life insurance policies
Some retirement accounts
- There is a process in which you can artificially increase the amount of assets you are able to keep by transforming nonexempt assets into exempt assets. this takes a highly qualified Medicaid attorney to properly advise you about how best to make these transformations.
- If someone you know is facing the possibility of requiring in-home nursing care or facing the possibility of being placed into a nursing home or long-term living facility, it is crucial you talk to an attorney to assist you in applying for Medicaid. Please do not apply for Medicaid alone.
If you believe you might have a need for Medicaid, it is crucial you contact a qualified attorney immediately. Contact The Lockwood Legal Group for a free consultation today! You can call our office phone, cell phone, or send us an email.