Can I Be Eligible for Long-Term Care Under Medicaid When I Have Assets Much More Than the Medicaid Eligibility Limits?

Quick Answer

Often yes. The eligibility limit applies to countable assets, and a good deal of what families own is either not counted or can be restructured into something that is not counted. Being over the limit today does not mean you are ineligible. It means there is planning to do before an application makes sense.

Countable is the word that matters

Everything turns on one distinction that almost nobody outside this work knows about.

Medicaid does not ask what you own. It asks what you own that counts. Those are different lists, and the gap between them is where most planning happens.

Certain assets are excluded from the count, and the home is the one people most often assume is lost when frequently it is not, depending on who lives there and what the circumstances are. Personal belongings, a vehicle, and certain burial arrangements are commonly treated differently than a brokerage account.

Full disclosure, I am being deliberately general here, because the moment I attach specifics to your situation I am giving legal advice rather than education, and the exclusions genuinely turn on facts I do not know about you.

Why “I have too much” is usually wrong

Families run a rough calculation at the kitchen table. They add up the house, the retirement accounts, and the savings, compare it to a number they read somewhere, and conclude they are far too wealthy to qualify.

Then they do one of two things, and both are costly. They spend down to nothing, handing over years of savings to a facility that would have been paid a different way. Or they give assets to the children, which creates a penalty period, meaning a stretch where Medicaid will not pay even though the money is gone.

My comment is this. Do the analysis before you do the arithmetic, because the arithmetic you are doing at that kitchen table is almost certainly using the wrong list.

The married situation is different again

If one spouse needs facility care and the other is still at home, an entirely separate set of rules applies. Georgia has protections designed to keep the community spouse from being impoverished, covering both a share of resources and, in some circumstances, income.

These protections are frequently underused, not because they are hidden but because families do not know to ask and nobody at the facility volunteers them.

What restructuring can look like

I am not going to hand you a technique, because the right approach depends on your marital status, your income, the nature of your assets, and how much time you have.

What I can tell you is the categories that get examined. How assets are titled. Whether excluded assets are being used efficiently. Whether income requires a Qualified Income Trust, which is the Miller trust that income routes through in an income cap state like Georgia. Whether any prior transfer inside the five year look back needs to be addressed. And whether the timing favors acting now or waiting.

When to talk to somebody

Before you spend down and before you gift. Those are the two moves that close doors permanently.

A note on how to use this

This is being presented for educational purposes only and nothing here should be treated as legal advice. What counts, what is excluded, and what can be restructured are all very fact specific to your assets, your marital situation, and your timing. I am licensed in Georgia and Michigan only, and the figures involved change every year.

If you are elsewhere, take the foundation and seek a wealth protection attorney in your jurisdiction.

Your next step

Before you conclude you have too much to qualify, schedule a complimentary 15 minute Strategy Session by calling 404-549-5001.

Ask about “Don’t Go Broke In A Nursing Home.” Our weekly webinar runs every Thursday at 1pm.

Related questions

• How does Medicaid define assets within the qualification process?
• How do I protect my resources and qualify for Medicaid?
• Are joint accounts protected for Medicaid eligibility purposes?
• If I haven’t planned ahead and need long-term care assistance today, is it too late?

   

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!