In order to qualify for Medicaid in the State of Florida, applicants must qualify medically and they must undergo a rigorous examination of their finances. They must fulfill specific criteria in the form of two tests known as the Income Test and the Asset Test.
We will provide more details on the Income Test in future blogs, but today we are going to provide some important information about the Asset Test
In order to qualify for Medicaid with regard to the Asset Test, the applicant must have less than $2,000 in countable assets. What this means is, the state will look at all of the assets you own such as real estate, securities, and other property, and if the combined net value of these assets exceeds $2,000 you will not qualify for Medicaid benefits.
If the applicant has a spouse that is also applying for Medicaid, the asset limit is $3,000. If the applicant’s spouse is not applying for Medicaid, known as the Community Spouse, he or she can have countable assets up to $119,220.
Clearly, $2,000 worth of assets is a very low number, and it can be very difficult to meet this requirement. Fortunately, not all assets are countable towards the Asset Test. Below we have detailed seven assets which are generally considered non countable. Please keep in mind that this blog is not intended as legal advice for your specific situation, and every Medicaid application should be considered on a case-by-case basis. Consult with a skilled Medicaid planning attorney like George Hough of ProActive Legal Care Law Office before taking any actions.
1) Home
For most people their home is their single biggest asset, and they fear losing that asset in order to afford their nursing care needs. Fortunately, as long as your home does not have more than $552,000 in equity and you or your agent assert that you intend to return to your home after your nursing home stay, Florida will not count it towards the Medicaid Asset Test.
2) Burial Fund
You can maintain a fund for your burial that is worth up to $2,500 that will not be counted towards your assets.
3) Vehicle
Medicaid applicants may keep one vehicle, no matter the age of the vehicle, and not have that vehicle count towards their asset limit. Additionally, you may keep a second non-luxury, non-antique vehicle that is at least seven years old.
4) Personal Items
Don’t worry, Medicaid is not going to send an appraiser rifling through your home and valuing all of your furniture, clothing, electronics, etc. Your non-collectible personal items such as furnishings will not be counted towards your assets for the purpose of the Medicaid Asset Test. However, collectible personal goods like jewelry, antiques, and artwork will likely be counted.
5) Life Insurance
Life insurance policies that do not have any cash value will not be counted as assets. If you do have cash value in your life insurance policies, the first $2,500 worth of cash value will not be counted either.
6) Income property
If you own real estate for the purpose of income, such as a condo which you rent out, this asset may not be counted if the income is being used for the sole purpose of your care needs.
Determining which assets will and will not be counted towards your Medicaid Asset Test is a complex and oftentimes confusing process. You will most certainly need the assistance of a knowledgeable Medicaid planning attorney to help give you the best chance for a successful application. Whether you are planning ahead for your long-term care needs or are in need of crisis Medicaid planning, contact the ProActive Legal Care Law Office today.
