A single person may not have as big of a problem with Medicaid eligibility because the rules are clearer.  A married couple, however, might have to jump through more hoops to become eligible. This could mean giving up some larger assets to qualify. Therefore it’s best to get the right advice when making these decisions because you can legally protect so much.

Anti-spousal impoverishment rules

     Medicaid allows you to have some assets or resources exempt from consideration. This includes a home, single vehicle, burial plots, burial policies, and a certain amount of liquid assets.  Single applicants can keep no more than $2,000, but the well-spouse of a married couple can keep 50% of their countable assets up to $148,620.  Assets over this amount would be subject to a spend-down.

Ways to Spend Down
 
   One way extra money could be spent is to pay for the nursing home, but this is not popular.  Other ways allow you to spend assets that benefit the spouse.  You could replace a vehicle, upgrade your home, purchase a burial policy, pay off debts, and more. 

Medicaid Compliant Annuity

     One little-known secret is you can purchase a Medicaid Compliant Spousal Annuity to legally and ethically preserve the excess assets for the benefit of the well-spouse. Extra assets are converted into income for the well-spouse, and that income is exempt from Medicaid.

     By utilizing this legal approach, the community spouse should be able to keep most of their hard-earned assets, except paying for a month or two of the nursing home while getting their Medicaid plan set up.

In Conclusion

      The best way to protect your assets is to consult your local elder law attorney. They will ensure that you have the best plan for your and your family’s future and that you never go broke in the nursing home.