Medicaid provides health coverage to millions of Americans, including eligible low-income adults, children, pregnant women, elderly adults and people with disabilities. Medicaid is administered by states, according to federal requirements. The program is funded jointly by states and the federal government.
The Medicaid System will pay for your care costs, including a stay in a nursing home, if you meet certain qualifications.
The Medicaid System has an asset limit. As of the day this article was written, as an unmarried person in Wisconsin, you must have less than $2,000 in assets to qualify for Medicaid. If you have more than $2,000 of assets, you must first spend your assets on qualifying expenses until you drop below the asset limit. Once you drop below the asset limit, the Medicaid System will cover your costs.
Countable Assets vs Non-Countable Assets
Assets are separated into two categories, countable and non-countable.
Countable assets count towards the asset limit of $2,000. Some examples of a countable asset may include cash, your bank accounts, and stocks.
Non-Countable assets do not count towards the asset limit of $2,000. Some examples of a non-countable asset may include a first automobile, money pre-paid for funeral expenses, or a primary residence if a spouse still resides in that home.
One of the methods in pre-planning for Medicaid is to strategically turn your countable assets to non-countable assets. Doing this will help preserve the value of your assets, while dropping you below the asset limit, qualifying you for Medicaid benefits.
We work with you to find the best methods and options of converting assets to non-countable assets to preserve the most value for you and fit your specific needs.
Estate Planning Strategies With Heritage Law Office
Contact one of our attorneys at our Wisconsin (414-253-8500), Minnesota (612-204-2300), or California (310-438-4020) locations to make sure your assets are properly protected or for more information on a Trust, Will, Life Estate, Medicaid Planning, or Estate Planning.