What Does Medicaid Consider an Asset?
The rules that govern whether or not an individual will qualify for Medicaid are complex and can be difficult to understand. Your total assets will be considered when determining Medicaid eligibility. However, some of your assets may be considered exempt and will not be used in determining your eligibility. For instance, generally personal property is exempt, as is equity in a homestead to a cap of $500,000 (under Michigan law). Multiple other types of exempt assets exist, including some of the Trusts discussed elsewhere on this site (see below for more detail).
At Michigan Estate Lawyers, our firm is committed to ensuring clients fully understand what types of assets are exempt and what are not, and then working closely with our clients to see that their needs are addressed, all Medicaid planning strategies are utilized and that their assets are protected as thoroughly as possible.
Our law firm is dedicated to a Christian model of service with a mission to protect clients as they make the best decisions for their family and future. Let us guide you with dignity and discretion.
Call 866-473-5636 or contact us by e-mail for a consultation with a Grand Rapids Medicaid planning lawyer.
Exempt Assets
When an asset is considered exempt, it means that the asset is not considered as part of the individual's total assets for Medicaid eligibility. Types of exempt assets in Michigan include:
- Home: A primary residence, up to $500,000 in equity value, may be exempted.
- Household and personal belongings: This includes furniture, appliances, jewelry and clothing.
- Vehicle: One vehicle can be exempted (a car, truck or van).
- Burial exclusions: Certain prepaid irrevocable funeral contracts and other burial funds are considered exempt.
- Cash value of life insurance policies: Up to $1,500 in cash surrender values may be exempt, along with term life insurance, depending on your situation.
- Certain Irrevocable Trusts
Non-Exempt Assets
In many cases, an asset that can be valued and turned into cash, counts for Medicaid eligibility unless it is one of those assets listed above as exempt. Non-exempt assets generally include:
- Checking and savings accounts
- Life insurance policies
- Investments, including stocks, bonds and mutual funds
- Money market accounts
- Certificates of deposit
- Second or third real property interest
Contact Our Michigan Medicaid Planning and Asset Protection Attorneys
For a free consultation, please call our Grand Rapids, Michigan, lawyers toll free at 866-473-5636 or contact us by e-mail to submit a question about your case.
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