EXEMPT ASSETS:
WHAT YOU GET TO KEEP WHEN "MEDICAID" has ASSET LIMITS*
(in addition to the usual $1600)
 
Lisa Nachmias Davis
Davis O'Sullivan & Priest LLC - Attorneys at Law
59 Elm Street, Suite 540
New Haven, CT 06510
203-776-4400
davis@sharinglaw.net ~ www.sharinglaw.net
(revised 1-21-24)
 
*NOTE: There is NO LIMIT on assets for Husky D
(low-income, not receiving Medicare, 19-64, single
(or if married, filing separately), not receiving "waiver" services;

*NOTE:  There is NO LIMIT on assets for QMB
(covers copays and deductibles for Medicare-covered services to those with low income on Medicare)
(QMB and other Medicare Savings Programs pay Medicare premiums and provide "extra help" with prescriptions)

*IMPORTANT:  For couples, assets of BOTH are counted;
however, for a person receiving long-term care whose spouse isn't,
OTHER ASSETS ARE PROTECTED FOR THE SPOUSE WHO ISN'T GETTING LONG-TERM CARE
(see Medicaid for Married People)
SO -- if YOUR Medicaid DOES have asset limits, what do you, an unmarried individual, get to keep besides Connecticut's $1600 limit, without affecting your eligibility?
1.
 Your HOME (1-family, 2-family, whatever) -- any value -- while any one of the following is living in it:
  •  Your SPOUSE
  •  Your disabled child or child under 21
2.
 If no spouse or disabled/minor child lives in the house, then equity in your home up to $1,071,000 (changes annually) (in CT) IF:
  • You are living in it (and in CT, you are "living in it" if you can reasonably be expected to return to it (which is checked every six months); if not, it's generally not going to be exempt; see #14 below)
  • NOTE:  you can GIVE to a sibling with an equity interest who has lived in house 1+ year preceding institutionalization.  The rule used to be that the house was exempt if the sibling lived in it -- no more.
(You are encouraged to take out a reverse mortgage to reduce the equity, if need be.  But if you are out of your home for 12 consecutive months you are not eligible for a reverse mortgage.)
3.
Personal effects, furniture, TV, household items (although at least in theory anything of value, that you could sell easily or hold for investment, isn't exempt)
4.
 Car:
  • If one spouse is at home and one in a nursing home (or receiving home care "under the Medicaid waiver" program), one car of any value.
  • If that doesn't apply, then one car of any value "needed" to transport you to medical appointments.
  • Any handicapped-equipped vehicle
5.
 Irrevocable Funeral Contract.
  • The State only allows these to be issued in CT up to $10,000.  (But see "Burial Plot" which typically allows you to get a more expensive funeral.)
  • If you don't have one of these, a revocable contract of $1,500 (less the value of any counted insurance -- see below)
6.
 Burial Plot.  Includes a revocable "burial trust" to pay for things like a casket or grave liner.  You can have one for each of you and spouse.  May be more than $10,000!  If the funeral home issues both, they need to specify which covers which.
7.
 Term life insurance ("term" insurance = you pay a premium; it does not pay interest or dividends; there is no cash surrender value, etc.)  If all you have a is "death benefit" from previous employment, where you didn't even pay a premium and can't control it, frankly, don't even mention it. It's not any kind of "insurance." Just a death benefit.
8.
 Other life insurance policies only if FACE VALUE of all policies combined is $1,500 or less.  ("whole" life or "permanent" life insurance, or universal, NOT term.) This is very confusing.  If the face value is $1,500 and the cash value is $3,500, the whole thing is exempt.  If the face value is $1,600 and the cash value is $1,500, none is exempt.
9.
 Partnership Exemption.  The equivalent amount to whatever your Connecticut Partnership Long-Term Care Insurance policy has ALREADY paid out for your care.
10.
 An "ABLE" account (you are eligible to set this up if gravely disabled prior to age 26). 

11.
 Reparations -- if you get Holocaust or internment reparations or payments from similar programs, these may be exempt.
12.
 Reverse Mortgage or Home Equity Loan proceeds in a SEGREGATED account.
13.
 Assets in a "Special Needs Trust" that pays back the State when you die, or (if over 65) a "Pooled Trust Account" -- consult an attorney.
14.
 Other Stuff that is "inaccessible"  -- which gets very technical and legal and may involve a fight -- so consult an attorney.  (A house listed for sale should qualify, though.  You must cooperate in trying to "liquidate" and "access" whatever is not "accessible." Jointly held real estate might be "inaccessible" if the other owners won't sell.  Same with a life use.)
15.
 Trusts, promissory notes, annuities:  IT DEPENDS – consult an attorney.  Your garden variety "living trust" or annuity is NOT PROTECTED.  In some cases, if the annuity is irrevocable and non-assignable, has a term no longer than your actuarial life expectancy, and the beneficiary is the State (up to the amount of Medicaid you get during life) after your spouse or child under 21 or disabled child -- this will be exempt.  IN CONNECTICUT, YOUR IRA IS NOT PROTECTED, AND COUNTS ENTIRELY, AS IF IT WAS CASH. (Exception: if you are, or were, receiving "Medicaid for workin gindividuals with disabilities" which exempts retirement accouns, they may still be exempt.) If a trust someone set up for you is for your "support'" it may not be exempt, but it depends on the precise words of the document.  Consult an attorney!
Most everything else is "counted" when determining whether you meet the financial criteria. There are further exceptions, however, so you should consult an attorney and provide your attorney with complete information.

Note:  This information is maintained to benefit the elderly in Connecticut and nationwide by providing a resource to attorneys, caregivers, and others assisting the elderly.  However, accuracy and currency are not guaranteed.  The law changes often; this may be out of date.

USE AT YOUR OWN RISK. Please report changes, errors, and suggestions to Lisa Davis.