Exempt Assests in Bonita Springs Medicaid Planning
Medicaid is a program that offers healthcare coverage to almost 60 million people who are unable to pay for medical care services. These are US citizens or any eligible immigrant with low income. It targets senior citizens with 65 years of age and above as long as they are eligible for the program and covers all the required medical services inclusive of custodial care or skilled nursing care.
Exempt assets are not counted towards Medicaid asset limits; therefore, it is essential for residents of Bonita Springs to be aware of the kind of assets which are exempt from Medicaid and the rules that come attached to such assets. Below are a few assets that are exempt from Medicaid in Bonita Springs.
Primary Home
Your primary home qualifies as an exempt asset if you who are applying for Medicaid services or your partner reside there. If none of you live in the home in question, you may be allowed an intent to return home to qualify it as an exempt asset. However, the intent to return is not grounded on the actual ability to return. Moreover, there exists a home equity value limit for the purpose of exemptions. According to the American Council on Aging, the value cannot exceed $585,000 or $878,000, however, it also depends on your residential state. Nevertheless, equity value limit does not apply if the Medicaid applicant’s spouse lives in the home.
Life insurance
Life insurance policies and term life insurance with a cash value of $1,500 and below are exempt from Medicaid. Residents of Bonita Springs should note that this cash limit may include the joint face value of several small life insurance policies. Additionally, both term and group policies that have no cash value are considered exempt assets. Furthermore, according to Medicaid, any life insurance policy with a zero-face value can be retained.
Personal property
Personal property also needs to be reasonable to be considered as an exempt asset or not. A Medicaid applicant will not be required to inventory their clothes, jewelry, cutlery, refrigerators among other personal effects, rather if within that period, a diamond artifact is purchased or the applicant owns an original portrait, those will be counted.
Funeral Expenses
A Medicaid applicant can buy his/herself and family’s pre-paid funerals. If the applicant himself has an effective irrevocable burial contract preceding the Medicaid application, then, that specific contract and the plot it goes with are considered exempt assets from Medicaid. Furthermore, all life insurance policies and bank accounts that are set aside exclusively to cater for funeral expenses are also exempt.
Complications are inevitable when figuring out which of your Bonita Springs assets are exempt from Medicaid, especially when you are in the process of, or making plans to seek financial help. Save yourself the stress and time by contacting our experienced elder law lawyers at The Mattar Firm. This firm has well-versed attorneys in Medicaid Planning who will help you determine the best ways of protecting your assets and determine which are exempt from Medicaid and those that are not. Contact The Mattar Firm to learn more on the topic.