Exempt Assets in Sanibel Medicaid Planning
Medicaid planning is a very important part of the elder law process. If you do not prepare for Medicaid properly, you could wind up losing assets that are very important to you and your family. Luckily, there are assets that are already exempt from Medicaid which you and your family are allowed to keep, even after the Medicaid recipient has passed away.
The Family Home
Most people think that the family home of a Medicaid recipient is automatically seized by Medicaid after the recipient has passed away. But there are a few situations in which the family home is exempt from seizure.
Medicaid will not liquidate the family home if the recipient has a reasonable expectation to return to the home, if the recipient’s spouse does not receive Medicaid and still lives in the home, or if a special needs child receiving Social Security benefits and under the age of 21 lives in the home.
If the Medicaid recipient has an irrevocable burial contract in effect prior to applying for Medicaid, then that contract and the plot that goes with it would be exempt from seizure. Any bank accounts or life insurance policies that are specifically designated for burial expenses are exempt, and Medicaid allows $2,500.00 in liquid assets to also be exempt for burial purposes.
Medicaid allows one vehicle for the recipient to exempt from liquidation. But the recipient can also own as many vehicles as they want provided the vehicles are seven years of age or older, and they are not considered collectible or antique.
Medicaid allows a recipient to retain certain retirement accounts up to a financial limit, depending on the recipient’s personal income. The recipient can retain ownership of certain types of commercial property, and they can also retain income property provided the property is being listed for sale at a fair market value.
Any life insurance policy with a zero face value can be retained according to Medicaid, and all life insurance policies up to a maximum of $2,500.00 in face value can be exempt as well. The recipient is also allowed to keep possession of one wedding ring.
It can be complicated trying to figure out which of your Sanibel assets are exempt from Medicaid when you are planning to apply for financial help. The Mattar Firm offers crisis and non-crisis Medicaid planning services that will help you to protect your assets and determine which assets are exempt from Medicaid’s look-back policy. When you want to preserve your assets for future generations, then give The Mattar Firm a call and we will show you exactly how it is done.