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Exempt Assets in Port Charlotte Medicaid Planning

Medicaid

As you age, you may need skilled nursing care or personal assistance to help you live safely and maintain your wellbeing. That said, the rules governing whether you qualify for Medicaid may seem complicated and hard to understand. To determine your Medicaid eligibility, your total assets will be evaluated. While others will be countable, some of them will be deemed exempt as they will not be used to determine your eligibility.

Exempt Assets

Below are some of the Exempt Assets in Port Charlotte and Southwest Florida Medicaid Planning:

Homestead

Ideally, Port Charlotte Medicaid deems primary residences a non-countable asset if they meet the following conditions:

  • The Port Charlotte Medicaid applicant home’s equity interest limit is $578,000 (as of 2019) or less. This amount is subjected to change yearly. If the home’s equity value is determined to be $578,001, it is deemed a countable asset. However, if the conditions below are met, the home still becomes an exempt asset:
  • the Port Charlotte Medicaid applicant’s spouse continues to reside in there,
  • the applicant’s child or children aged under still live in the home, or
  • the applicant has a dependent SSI-disabled child of any age still living in the home, AND
  • the Port Charlotte Medicaid applicant has an intent to return to his or her home. This intent is presumed under Florida law.

Therefore, either of the first four conditions and the fifth condition must be met for a homestead to be rendered a non-countable asset.

The Catch

If the applicant claims that they have an intention to return to their primary residence, the Port Charlotte Medicaid application specialists will not challenge the claim. However, if the applicant shows by actions that they do not intend to return, such as placing the property on sale, the homestead is deemed a countable asset. Additionally, a Medicaid attorney can effectively deploy some strategies to help you preserve and protect your property. This is why it is crucial to consult an attorney before selling any home when your loved one is involved in LTC.

Community Spouse Resource Allowance (CSRA)

The Port Charlotte Medicaid offers special protections for the spouses of applicants that ensures that the spouses of Medicaid applicants have the minimum support required to continue to live in the community while the beneficiary receives the LTC benefits. It is worth noting a marriage valid in any state will be recognized for benefits.

In Florida, as of 2019, the Community Spouse Resource Allowance (CSRA) is $126,420. CSRA is the value of nonexempt assets that can be shifted to the community spouse without affecting the Medicaid eligibility of the ill-spouse. This amount is adjusted every January. Moreover, it can be adjusted to fit the Well-Spouse’s Minimum Monthly Maintenance Income Allowance based on prevailing circumstances.

Other Exempt Assets

Personal Property

Port Charlotte Medicaid will not expect the applicant to inventory their jewelry, clothing, and appliances.

Life Insurance

Medicaid does not count life insurance of up to $2,500 in total and combined cash value. Since the Port Charlotte Medicaid only looks for accessible resources, it does not calculate death benefit.

Unsalable Assets

Medicaid does not count assets that cannot be sold such as timeshares. Even though timeshares are assets, they are very hard to sell.

401k or IRA

Medicaid will not count these assets if properly structured, but the payout amounts will be included as income.

One Car

Regardless of value within reasonable limits, Port Charlotte Medicaid will not count a vehicle. Additionally, a second car aged more than seven years is also exempt. However, luxury models, antiques, and customized vehicles are counted, whether you only have one car or it is more than seven years old.

Assets to Income

The Port Charlotte Medicaid does not count the assets which can be converted to income for the Minimum Monthly Maintenance Needs Allowance (MMMNA) purposes.

Prepay for Funerals

The Port Charlotte Medicaid applicant can purchase irrevocable pre-paid funerals for themselves and family members.

Rental or Income Producing Property

The Port Charlotte Medicaid does not count non-homestead property which is rented out as an asset, but income that it generates is counted.

Nonexempt Assets

In the Port Charlotte Medicaid, assets that can be valued and turned into cash are countable, unless it is one of the aforementioned assets. Generally, the nonexempt assets include: Life Insurance Policies, Checking and Savings Accounts, Money Market Accounts, Investments (including but not limited to stocks, bonds, and mutual funds), Second or Third Real Property Interest, and Certificates of Deposit.

What Next?

After the non-countable assets have been identified or bought, your Medicaid lawyer will help you strategize on the best way to ethically and legally convert countable assets that are in excess into exempt assets for Medicaid purposes.

Getting Legal HelpAt The Mattar Firm, our experienced and competent Medicaid lawyers are devoted to ensuring that our customers fully understand what exempt and nonexempt assets entail.Our unparalleled commitment to serving the people of Port Charlotte, and the greater southwest Florida area, is unmatched. We closely work with our clients to ensure that their desires are professionally addressed and ensure that their assets are protected and are safe, both ethically and legally. If you have any question or needs clarification about Port Charlotte Medicaid, do not hesitate to contact our elder law attorneys at The Mattar Firm. Your satisfaction is always our priority!

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