If you are looking at needing a nursing home in the near future, now is the time to be thinking about your Medicaid eligibility. Medicaid planning is important for most people who need a nursing home because the cost is simply too high for most families to afford. Medicaid is a complex program, and there are many assets that can affect your eligibility. Here are three that should be avoided.
Term life insurance policies are excluded by Medicaid’s asset counts, but whole life, variable life, or permanent life insurance policies that have a cash value will be counted. If the cash value of any of your life insurance policies is over $1500, you could be excluded from Medicaid. If you have a life insurance policy with a cash value, it may be time to convert it to a term life insurance policy.
If you own a home in a state other than the one where you are applying for Medicaid, that property will exclude you from the program. You are only able to have your primary residence, and any other real estate that is required for your self support such as rental properties or farms. You will need to relieve yourself of any real estate property outside the state you primarily reside in.
For the purpose of Medicaid, you are only allowed to have one car in your household. If both you and your spouse have cars, you will need to give one of them up. You can either sell the car or you can give it to a beloved family member.
If you are confused about the requirements for Medicaid eligibility, you are not alone. The process is extremely complex. Contact us today to get more information about Medicaid planning or to schedule an initial consultation.