Medicaid plays a key role in helping elderly individuals get much-needed care coverage. However, it can feel like you’re jumping through hoops to ensure you remain eligible for the program due to its strict income requirements.
Thankfully, some assets don’t count toward your program eligibility. Below are five assets you can keep and still qualify for Medicaid assistance.
Primary residence
Medicaid understands the need for a stable home environment. So, as long as the equity value is within limits, your primary home remains safe. The equity value changes with each year. The New York Medicaid program exempts homes up to $1,071,000 in value for 2024.
One vehicle
You can usually keep one vehicle without affecting your Medicaid eligibility, regardless of its type or value. Whether you use it for work, medical appointments or just getting around, your vehicle remains a noncountable asset or resource.
Household items
Your household items are free from Medicaid considerations. This includes:
- Household furniture, such as beds or sofas
- Electronic appliances, like a washing machine
- Personal belongings, like clothes and jewelry
Like with vehicle exemptions, these items remain except from Medicaid calculations regardless of their value.
Tax-deferred assets
Tax-deferred retirement accounts like 401(k)s and IRAs don’t count toward qualifying for Medicaid. The assets are exempt as long as you’re in payout status. That means taking regular minimum distributions.
Note that your monthly payout from these retirement assets counts as income. Working with an experienced elder law attorney may help ensure your monthly income meets Medicaid requirements.
Irrevocable trusts
New York counts trusts as resources for Medicaid eligibility. However, irrevocable trusts are sometimes exempt.
Medicaid asset protection trusts (MAPTs) and burial or funeral trusts generally don’t count toward your asset limits. Timing and proper trust setup are crucial to ensure your trust is outside the Medicaid lookback period.
Plan ahead to protect your assets and your health
Understanding which assets are exempt from Medicaid calculations can help you create a spend-down strategy to reduce your assets without lowering your overall quality of life. Remember, Medicaid planning isn’t just about protecting assets – it’s also about protecting your health and dignity in your later years.