Countable assets are assets that Medicaid deems available to the applicant to pay for the healthcare services for which he or she is applying. If the applicant’s countable assets are above the means-tested limit, then the applicant will be denied Medicaid. Countable assets are contrasted with exempt assets, which are not subject to means testing and are not considered countable.
Before initiating a Medicaid application for Medicaid eligibility, the applicant should make a full determination of whether of not the Medicaid applicant’s assets are under the Medicaid asset limit and pass the Medicaid asset test. otherwise there is no reason to even apply for the assistance.
And what are countable assets? Countable assets will include most of assets a person holds: bank accounts, checking accounts, IRAs (in some states; IRAs do count as countable assets in Missouri), face value of bonds, investments, stocks, the cash value of life insurance policies, fair market value (less mortgages) or equity value of any real estate outside of the primary residence), annuities, mutual funds, all liquid assets.
Countable assets are contrasted with Non-Countable Assets (i.e. Exempt Assets); Non-Countable Assets are assets that Medicaid does not consider to be available to pay for care, namely: furniture, personal belongings, primary residence, and one automobile or other vehicle. These assets are considered vital to allowing the Medicaid applicant to live and thrive in the community, and therefore are not subject to any spend down to get the applicant under the Medicaid limits.
It is important to note that assets, while countable, can be assigned to a Community Spouse under a Division of Assets when the other spouse is applying for Medicaid assistance for nursing home care. Under a Community Spouse Resource Allowance (CSRA), Medicaid will assign countable assets to the healthy spouse to continue to live in the community. A married couple should apply for this Medicaid Division of Assets immediately upon the entry into care of the spouse in need. Such a division is not available to a single person.
The full assessment of countable assets and the requirement that are subject to spend down below the Medicaid asset limit highlights the need for Medicaid planning. Through the use of perhaps an irrevocable trust as part of estate planning, otherwise countable assets can be protected if the trust is established more than 5 years before the Medicaid application (the look back period). This, and other asset protection strategies, should be investigated if a need for long term care or health care is anticipated in the coming years. A qualified elder law attorney can assist with the establishment of such estate planning.
QMC can guide you and your family in the right direction regarding all of these, and many other issues today. Give us a call at 314-918-0084.
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