Estate Planning Attorney | Knowing the Countable and Non-Countable Real Estate
If you are relying on Medicaid to pay for the long-term care of you or a loved one, it’s important to understand how your assets should be divided. Medicaid assets are composed of countable and non-countable assets.
An estate planning attorney will advise that the amount of your countable assets cannot exceed $2,000. Countable assets are broadly defined as anything that could potentially be used to pay for medical care. This includes things like a savings account or other bank accounts. Non-countable assets are things like your home or car that has no effect on your Medicaid application.
If you have more than $2,000 in countable assets, you will need to apply to convert your countable assets to non-countable. One way to convert your assets is to purchase large ticket items like purchasing a car or home that you’re renting. Personal property is usually always excluded from qualifying amounts. However, just because personal property is exempt doesn’t mean you should buy an extravagant car or home. An estate planning attorney will tell you that extravagant amounts of money spent is considered an investment, and therefore countable.
If you are interested in converting your countable assets to non-countable, you should consult with an estate planning attorney before making any drastic purchases. Each state is different with your capital gains, property, annuities, and taxes that allow you to apply for Medicaid. If your spouse is not applying for Medicaid, the community spouse resource allowance is $123,600. This allows the spouse not needing the care to continue to support themselves.
If you or a loved one are planning on applying for Medicaid, make sure to consult with an attorney beforehand. The Law Office of Michelangelo Mortellaro can help you along the way. Contact us today for a free consultation!