Though the idea can seem scary, many people in Texas and across the country will need some type of long-term care in their elder years. In many cases, families may struggle to pay for such care, which is why many people want to qualify for Medicaid assistance if possible. Because obtaining this financial help depends on certain financial qualifications, many individuals try to prepare to meet those requirements ahead of time.
Medicaid planning is becoming more prominent, and spending down assets is a common way to qualify for this help. However, it does not necessarily mean that individuals need to get rid of all of their assets. In fact, Medicaid sets asset limits, which means that parties can keep certain assets while still qualifying for assistance. For example, if a person is 65 or older and is unmarried, he or she can maintain $2,000 in liquid assets, such as cash, stocks or bonds.
Though $2,000 may not seem like much in the long run, individuals are also able to maintain other illiquid assets. For example, a person’s car is not counted in Medicaid qualification as long as it is used for transportation. Extra vehicles or collectible vehicles may not qualify for the exemption. Additionally, a person can keep his or her home as long as the home is located in the state in which the person is applying for Medicaid, the person’s equity is $595,000 or less, and the person will continue living in the home or intends to return home after a nursing home stay.
Fortunately, certain other assets are not included in Medicaid qualifications either. Still, it can be difficult to know the best way to go about planning to qualify without inadvertently causing financial difficulties. As a result, it is wise to consult with Texas elder law attorneys experienced in this process who could offer sound advice and assistance.