What assets are exempt for a couple in the event that there is a healthy spouse who lives in the community and only one of them needs benefits? First, and most importantly: your home. You may keep your home but the amount of equity may be limited to $500,000 under the new rules. Initially the home will be free of any Medicaid lien, just as long as it is occupied by the community spouse and/or a minor or disabled child. In addition to the house, you can keep one car and your household furnishings and decor.
That's right. The Medicaid "police" are not coming to search through your home to see if you own a Picasso or have a bronze by some famous artist.
Medicaid strictly limits the assets you can own. Each state has its own limit on this amount and its own guidelines for which assets count toward the total. In general, however, the following assets do not count against you for Medicaid eligibility, and are known as "exempt assets."
- Your home: Your principal place of residence. In some cases, the nursing home resident may be required to show some "intent to return home," even if that never happens. Be aware, though, that second homes, such as vacation homes or condos, are not exempt assets.
- Household and personal belongings: Furniture, appliances, jewelry, and clothing.
- One car: The state may limit the car's value. - Burial plot/prepaid funeral plan: The state may limit the value of the plot or plan.
- Cash value of permanent life insurance policies up to $1,500: In most states, this asset is exempt only if the face value of all policies added together does not exceed $1,500. If the total exceeds $1,500 in face amount, the cash value counts and may need to be spent down on long term care.
- Cash: A small checking or savings account not to exceed the limit imposed by the state. Most of the time, a single Medicaid applicant may keep only about $1,500 to $2,000. A married couple who both need nursing home care may generally keep a slightly more generous amount. And a married couple in which only one person needs Medicaid assistance can usually keep a larger Community Spouse Resource Allowance.
