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Sound Advice: January 22, 2025

 Can you get Medicaid if you have substantial assets?

Here are some things to keep in mind:

To qualify for Medicaid while having assets, you can employ several strategies:

  1. Understand asset limits: Most states allow individuals to have up to $2,000 in countable assets ($4,000 for married couples)

Your home, up to a value of $500,000 or $750,000 depending on the state, is generally exempt

  1. Spend down assets: Reduce countable assets by spending them on noncountable items such as home modifications, prepaying funeral expenses or paying off debt
  1. Create a Medicaid Trust: Transfer assets to a properly designed trust to remove them from your estate while potentially still receiving income from those assets
  1. Utilize Community Spouse Resource Allowance (CSRA): If only one spouse is applying, the nonapplicant spouse may keep up to $157,920 in assets in most states
  1. Consider Medically Needy Medicaid: In 32 states and Washington D.C., you may qualify if your medical expenses consume most of your income
  1. Use Miller Trusts or Qualified Income Trusts (QITs): These can help manage excess income in some states
  1. Seek professional help: Consult a Medicaid Planning Professional to explore strategies for becoming Medicaid-eligible while protecting your assets

Remember that Medicaid has a 5-year look-back period, so asset transfers must be done carefully and well in advance of applying

N. Russell Wayne

Weston, CT  06883

 

203-895-8877

www.soundasset.blogspot.com

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