What Are Countable Assets for Medicaid Planning?

As we get into our 40s and 50s, many of us have aging parents who need to learn more about Medicaid planning and long-term care options. Not only is it important for adult children to understand how the law works so that they can help their parents and other elderly relatives, but many adult children are getting old enough themselves that it makes sense to understand rights and options concerning long-term care. One thing that is critical to understand about Medicaid planning for long-term care is Medicaid eligibility and which assets are countable (versus those that are non-countable assets).

If this terminology is new to you, do not worry. One of the experienced Connecticut elder law attorneys at our firm can provide you with general information about Medicaid planning and countable assets, and we can speak with you today about immediate needs for an elderly parent.

Understanding Medicaid Needs for Long-Term Care

If your elderly parent earned a middle-class or higher income, you might be confused about why it is important to think about Medicaid. In short, nursing home care and other forms of long-term care are extremely expensive. Even for relatively comfortable middle-class people, an extended stay in a nursing home can completely eradicate their assets within months. As such, it is important to engage in Medicaid planning in advance to protect assets while ensuring that an elderly adult will be eligible to have Medicaid pay for nursing home care.

In order for an older adult to be eligible for Medicaid to cover long-term care in a nursing home, they must have assets below the stated limits in Connecticut. Only “countable” assets will be considered, but in order to make sure that income and assets are below the stated limit, it will be critical to know what types of assets are considered “countable” and which assets are considered “non-countable.”

Asset Limits and Medicaid Eligibility

For a single elderly Connecticut resident to be eligible for Medicaid coverage of nursing home care, they must generally have countable assets valued at less than $1,600 and a limited income (the income limit can vary depending on the type of long-term care and the older adult’s specific circumstances). For married couples both seeking Medicaid coverage for long-term care, the countable asset limit doubles to $3,200.

When only one spouse in a married couple requires long-term care and Medicaid coverage, the asset limit is typically $1,600 for the older adult seeking Medicaid coverage for nursing home care, while the other spouse, current as of 2024, can have countable assets up to $154,140.

What Are Countable and Non-Countable Assets? 

What assets “count” and which ones do not? In general, the following are “countable” assets:

• Cash;
• Bank accounts;
• Real estate (other than a primary residence)l
• Investments;
• Stocks and bonds; and
• IRAs

Non-countable, or exempt, assets include personal items, furniture, motor vehicles, and more.

Contact a Canton Elder Lawyer 

If you have any questions or concerns about Medicaid eligibility, or you need help with Medicaid planning for long-term care, you should seek legal advice from an experienced Connecticut elder law attorney at the Law Office of Brian S. Karpe. An advocate at our firm can speak with you today about your elderly parent’s circumstances, and we can answer any specific questions you have that deal with facts particular to yours or your parent’s case.

Source:

portal.ct.gov/-/media/departments-and-agencies/dss/brochures/long-term-care-waiver-information/ltc_issues_1013.pdf