Practice Areas > Medicaid Planning > Important Facts About Medicaid
Resource (Asset) Rules
We are providing a general outline of the federal rules. Each state has its own version and it would be advisable to consult with a qualified attorney in your state.
In order to be eligible for Medicaid benefits, a nursing home resident may have no more than $2,000 in “countable” assets.
If the nursing home resident has a spouse, that person is called the ‘community spouse’. The community spouse is limited to one-half of the couple’s joint assets up to $101,100 (in 2007) in “countable” assets (see Medicaid, Protections for the Healthy Spouse). The $101,100 figure changes each year to reflect inflation. In addition, the community spouse may keep the first $19, 856 (in 2007), even if that is more than half of the couple’s assets. This figure is higher in some states.
- All assets are counted against these limits unless the assets fall within the short list of "noncountable" assets. These include:
- personal possessions, such as clothing, furniture, and jewelry;
- one motor vehicle, any value;
- the applicant's principal residence, provided the applicant has an “intent to return home.”
- One pre-paid irrevocable funeral;
- Life insurance, if the total face value doesn’t exceed $1500;
- Certain “unavailable” assets—those that are not easily accessible.
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