"There’s always an exception that proves the rule.”
- Anonymous
We started out our Medicaid discussion by talking about the basics. Your Medicaid application will be successful only if you own $2,000 or less of (allowable) assets. One your application is approved, you must then contribute all of your income toward paying for your care. Today, we’re going to start talking about that little word in parentheses: “allowable.”
Title XIX of the Social Security Act provides for the exclusion of a variety of assets when calculating the total assets owned by a Medicaid applicant. These exclusions take several forms: there are exclusions for certain financial instruments, exemptions for certain physical assets, and exceptions for when a spouse is involved.
For example: a single Medicaid applicant may own one automobile in addition to the $2,000 asset limit. Other allowable assets include a pre-paid funeral plan and life insurance with no cash value.
The exemptions, exclusions, and exceptions are the bread and butter for an attorney with experience in long-term care planning. Stay tuned to the Medicaid Mayhem series to learn more about some of these options.
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Lawyer Joke of the Day:
Did you hear they just released a new Barbie doll called "Divorced Barbie"? It comes with half of Ken's things and alimony.
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