When you hear that the upper resource limit for Medicaid eligibility is just $2000, you may feel as though there is no reason to apply because the value of your home alone exceeds this figure by a large margin. However, Medicaid planning attorneys will advise you to take pause before you assume that you cannot qualify for the program.
Though there is indeed a countable resource limit of $2000 there are personal possessions that are not counted by Medicaid evaluators. The value of your home up to $525,000 in equity (this is the figure that is accurate for 2012 but it is subject to change) is not considered to be countable.
It should be noted that each state has the option of raising this $525,000 equity limit to $786,000, and once again these are the 2012 figures.
So in reality you could potentially qualify for Medicaid as a homeowner.
When you are engaged in Medicaid planning another thing to consider is the fact that states attempt to obtain reimbursement for funds that they put out to pay for the long-term care of senior citizens once they are deceased. However, if your spouse or a dependent is still living in your home, Medicaid cannot attempt to obtain compensation by attaching the home.
It takes intelligent advance planning to qualify without losing everything in the process. However, Medicaid can be a viable solution for many individuals who need long-term care. In fact seven out of every 10 people who are residing in nursing homes rely on Medicaid to pay for the care.
- Why You May Need a Trust Instead of a Simple Will - December 7, 2023
- Elder Law Answers: Government Benefits for Seniors - December 5, 2023
- Will Your Second Home Go Through Ancillary Probate? - November 30, 2023