• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Unsworth LaPlante is open for in-person meetings! We have taken precautions in our office to ensure the safety and well-being of our clients and staff. To learn more about how Unsworth LaPlante is helping people through the COVID-19 pandemic, click here.

Unsworth LaPlante, PLLC

Vermont Estate Planning Attorneys

Vermont: (802) 879-7133

Attend A Free Webinar
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
  • Services
    • Elder Law
    • Estate And Gift Tax Figures
    • Estate Planning
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
  • Resources
    • Articles
    • Elder Law Reports
    • Elder Law Resources
      • Burlington
      • Free Estate Planning Seminars
      • Montpelier
      • Rutland
      • St. Johnsbury
      • White River Junction
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate and Gift Tax
      • Estate Planning
      • FAQs for Families Without an Estate Plan
      • Incapacity Planning
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Special Needs Planning
      • Trust Administration
      • Trusts
      • Wills
    • Is Your Estate Plan Outdated?
    • Medicaid Resources
      • Medicaid Analysis Worksheet
      • Medicaid Guide
      • Vermont Medicaid
    • Newsletters
    • Presentations
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
    • Top Estate Planning Techniques
  • Webinars
  • Communities We Serve
    • Burlington
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact
Home » Albany Medicaid Planning: All Assets Do Not Count

Albany Medicaid Planning: All Assets Do Not Count

July 25, 2019 by Ellen LaPlante

Medicaid planning

You are probably aware of the fact that Medicaid is a government health insurance program that is in place to provide a safety net for individuals that have little to no financial resources. A lot of people that have worked all their lives while saving for retirement wonder why this program would ever be relevant to them.

If you are confused on this score, you should certainly understand some facts about nursing home care and the costs that go along with it.

If you work for at least 10 years and pay FICA or self-employment taxes, or if your spouse has satisfied this requirement, you will qualify for Medicare as a source of health insurance when you reach the age of 65. This is the age of eligibility at this time, but it is always subject to change via legislative mandate, so it is something that you should keep in mind as you are looking ahead toward your retirement years.

Though there are some people that qualify for Medicare that are not seniors, for the most part, it is intended to provide assistance for elder Americans. Most people over the age of 65 will need long-term care eventually, so it would certainly make sense to assume that Medicare would pay for residence in a nursing home if it ever becomes necessary.

A lot of people would say that it is unfair, but in reality, Medicare does not pay for the custodial care that you would receive in a nursing home. It would pay for convalescent care and some services that are considered to be palliative care or hospice, but it does not pay for long-term custodial care.

Medicaid & Long-Term Care

Now that we have shared the necessary background information, we can move on to the relevance of Medicaid for people that qualify for Medicare. This jointly administered federal/state government health insurance program will pay for long-term care if you can obtain eligibility.

Of course, as we have stated, this is easier said than done, because you cannot qualify if you have significant assets in your own name.

One thing to understand is that there are countable assets, and monetary resources that are not considered to be countable for Medicaid eligibility purposes. The limit on countable assets is just $2000 all around the country with the exception of New York. Here in our state, the limit is $15,450.

Once again, these are countable assets, but there are a number of things that you may own that are not countable for Medicaid eligibility purposes. The most significant one is your home, but there is a limit on home equity. The states have a choice with regard to how much they want to allow within certain parameters. New York has opted for the maximum level of equity, which is $858,000 in 2019. Notwithstanding the fact that the home is not a countable asset, Medicaid will seek recovery from the home if an individual receives care and Medicaid will lien the home for the amount of care provided.

If you have any heirloom jewelry, it is not counted, and you can add your wedding ring and engagement ring to this list. Furniture and other household items are not countable, and your personal belongings are out of play. You can have one vehicle that is used as a primary source of transportation, along with unlimited term life insurance.

An applicant can retain ownership of $1500 that is earmarked for final expenses along with a whole life insurance policy valued at as much as $1500.

We mentioned above that the home is not a countable asset, but there is an equity limit. In many instances, there will be a healthy spouse that will not be entering a long-term care facility. Such a spouse could continue to live in the family home without any equity limit at all.

The healthy spouse is also entitled to a Community Spouse Resource Allowance. This is half of the shared countable assets, but there is a limit to how much you can keep. In New York during the current calendar year, that limit is $126,450. There is a minimum limit of $74,820.

Under ordinary circumstances, the spouse that is going to qualify for Medicaid must use their income to help pay for the care that is being received. A married person is not subject to this stipulation if the income is needed by the healthy spouse. This is called the Monthly Maintenance Needs Allowance, and it stands at $3160.50 during the current calendar year.

Download Our Free Worksheet!

If you would like to obtain detailed information about Medicaid planning and other elder law and estate planning topics, download our worksheet. It is being offered free of charge at the present time, and you can visit our worksheet access page to get all the details.

 

  • Author
  • Recent Posts
Ellen LaPlante
Ellen LaPlante
Ellen LaPlante is an attorney whose mission is to provide clients with guidance in Estate Planning, Elder Law, and Medicaid Preparation. She is barred in Vermont and New York. Ellen helps clients put together unique estate plans, including assistance with Trusts, Wills, Powers of Attorney, and Advance Directives. She also works with clients on Medicaid Planning and qualifying for Medicaid assistance.
Ellen LaPlante
Latest posts by Ellen LaPlante (see all)
  • Tony Hsieh of Zappos Fame Died Without a Will - January 13, 2021
  • New Year’s Resolution: End the Estate Planning Procrastination - January 6, 2021
  • IRS Releases 2021 Estate Tax Exclusion Adjustment - January 4, 2021

Filed Under: Elder Law Tagged With: medicaid planning, countable assets

Other Articles You May Find Useful

nursing home costs
Genworth Releases 2020 Cost of Long-Term Care Survey
Medicaid spouse allowances
Medicaid Spouse Allowances Will Rise in 2021
nursing home asset protection Medicaid planning
5 Key Facts About Long-Term Care
Medicaid planning
Will Your Parents Need Long-Term Care?
community spouse resource allowance
Overview of Medicaid Spouse Allowances
sandwich generation
Are You a Member of the Sandwich Generation?

Primary Sidebar

Elder Law and Medicaid Planning Attorneys

Unsworth LaPlante, PLC

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Essex Junction, VT

26 Railroad Ave
Essex Junction, VT 05452
United States (US)
Phone: (802) 879-7133
Fax: (802) 879-0408

Map

unsworth_sidbr_map

Office Hours

Monday8:00 AM - 5:00 PM
Tuesday8:00 AM - 5:00 PM
Wednesday8:00 AM - 5:00 PM
Thursday8:00 AM - 5:00 PM

Footer

footer-logo
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

The information on this Vermont Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

American Academy of Estate Planning Attorneys, Inc. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2021 American Academy of Estate Planning Attorneys, Inc.