Posted on: 8 May 2017
Because of the fact that Medicaid is needs based, you might find that you currently do not qualify for it because you have too many assets. However, you might know that you need long term health care or some other intensive form of care that is going to cost you a lot more than you have in savings and assets. As a result, you will need to spend down your assets in order to get them below the threshold that will allow you to qualify for Medicaid. Here are some tips for spending down these assets legally and to the best of your advantage.
1. Know Which Assets Don't Count
There are some assets that you might have that do not count towards your asset level when the government is deciding if you qualify for Medicaid. Don't worry about trying to sell your home or your car. You are allowed to have a small amount of cash on hand for emergencies. Any money that you have set aside for your burial and funeral services does not count towards your overall asset level. Finally, the furniture and appliances that you have in your house do not count. This will allow you to maintain your quality of life while spending down the rest of your assets. The specifics may vary by state.
2. Pay Debts
Most states will allow you to spend down your assets by paying off debts that you are personally legally required to pay, such as credit cards, student loans, mortgages, rent, and utilities. You might be able to pay your rent or utilities in bulk so that you are essentially spending money up front that you would have ended up spending in the future. This allows you to manage your debts while getting the medical care that you need.
3. Buy Assets That Don't Count
Some houses will not count against you in terms of your asset amount. You can spend down your countable assets by buying a noncountable asset like a car or a house. Talk to a lawyer specializing in this because it varies wildly by state. You can also set up your funeral arrangements and pay for those ahead of time safely.
4. Put Money Into an Annuity
Finally, you can put a large amount of money in an annuity so that your spouse receives a set amount of money for the rest of his or her life. Be sure that the annuity is not transferable. Talk to a lawyer for more details.
For more information, talk to a company that specializes in long term Medicaid services. They will be able to help you qualify.Share