3 Strategies for Qualifying for Medicaid Without Losing Your Assets

If you are looking to strategically qualify for Medicaid, even if you earn a lot of money, here are three things you might consider. If any of this is helpful, tune into my new podcast, Your Money Guide on the Side, by clicking the link in my bio.

1. Know Your State's Asset Limits

First, understand your specific state’s asset limits. The asset limit for Medicaid is around $2,000 for individuals. However, your primary residence and personal belongings may be exempt from this limit.

2. Establish a Medicaid Asset Protection Trust

Second, consider establishing a Medicaid Asset Protection Trust to help protect your assets from being counted towards Medicaid eligibility. Remember, these trusts must be set up at least five years before applying to Medicaid, and they are irrevocable. This means you can protect your assets for your heirs, but you will lose control and ownership of those assets and their management.

3. Utilize Spousal Asset Transfers

Finally, consider spousal asset transfers. If you’re married, transferring assets to a non-applicant spouse can assist in meeting Medicaid’s asset limits. In most cases, assets are considered jointly owned; however, the non-applicant spouse is allowed to retain what's called Community Spouse Resource Allowance (CSRA), which varies by state.

Conclusion

Remember, boys and girls, I am no money expert. I just play one on social media. But if you’re seriously considering any of this, consult a tax attorney near you who specializes in matters that nobody else wants to think about.

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