Medicaid planning: What assets are exempt in New York?

There's a lot of misunderstanding when it comes to qualifying for Medicaid in New York. A number of aging individuals may be confused as to what assets they are allowed to own and still qualify for Medicaid, since, for example, many have mistakenly been informed that they cannot receive benefits if they own their own home. In reality, there are several assets a New York resident can own, as the skilled guidance of a Medicaid planning attorney in advance can ensure qualification requirements are legally met.

Individuals applying for Medicaid are limited to $2,000 or less in cash when determining Medicaid eligibility. This amount does not include funds set aside for funeral and burial costs. If the funeral or memorial service is pre-planned or if burial plots are pre-purchased, the entire value is excluded as an asset. If not, a separate bank account for these funds is allowed to contain $1,500 that will be not be counted against Medicaid eligibility.

When it comes to homes and personal property, other exemptions apply as well, as federal law stipulates that property essential to self-support is excluded, regardless of value. This could include farms or rental properties, or anything that generates income necessary for the individual to support him or herself, with some further stipulations. As for the home itself, houses valued at less than $500,000 – or $750,000 if a spouse or children live there – are also excluded, as are automobiles of any value.

Of course, these are the most basic rules, and only a few of the many surrounding Medicaid qualification. With the five-year look-back period and a host of other regulations involved with qualifying for Medicaid assistance, it's best to begin planning now rather than chance expensive complications later. The knowledgeable guidance of a Long Island New York Medicaid planning attorney now can save aging individuals and their families both money and stress later.

Source: agingcare.com, "Asset Limits to Qualify for Medicaid", K. Gabriel Heiser, Accessed on Jan. 6, 2018

No Comments

Leave a comment
Comment Information
FindLaw Network
EMAIL US FOR A RESPONSE

Let’s Talk.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

An Elder Law And Estate Planning Law Firm On Your Side.
Futterman, Lanza & Pasculli, LLP | Elder Law & Estate Planning Law Firm

satellite offices

By Appointment Only

222 East Main Street
Ste 314
Smithtown, NY 11787

Phone: 631-894-4730
Fax: 631-979-9546
Smithtown Law Office Map

13 East Main Street
Bay Shore, NY 11706

Phone: 631-515-5978
Fax: 631-665-9262
Bay Shore Law Office Map

satellite offices
70 East Sunrise Highway
Ste 500
Valley Stream, NY 11581

Phone: 631-894-4730
Map & Directions

33 Flying Point Road
Suites 121/122
Southampton, NY 11968

Phone: 631-894-4730
Map & Directions