A person cannot own more than $2,000 in assets and be eligible for Medicaid. As covered in another article, there are also restrictions on what a person can do to reach that asset limit. Put simply, any transfer of an asset for less than market value to a non-exempt person will result in a period of ineligibility for the applicant.
However, spending money on many things that benefits the applicant is allowed. Some of the most common expenditures include medical care or equipment, paying of debt, establishing an irrevocable preneed funeral service trust, home repairs, or certain personal items.
The first four of these are self-explanatory but the last can be quite broad in meaning. Buying a new automobile, home, wardrobe, or even a piece of furniture have all been found to be acceptable items applicants can spend down on in appropriate circumstances.
Mr. Abraham is an experienced attorney and founding member of the Law Firm of Abraham & Bauer. The Towson, MD office of the firm concentrates its practice in Elder Law, Estate Planning, Probate, Medical Assistance (Medicaid), Guardianship, Asset Preservation and Fiduciary Representation.
He is an active member in a number of professional organizations that focus on law, the senior community, and estate planning. He works with clients in Central Maryland, especially in Towson, Hunt Valley, Lutherville/Timonium, Parkville, White Marsh, Bel Air & Northern Baltimore City.
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