• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
  • Services
    • Asset & Business Planning
    • Dental Practice Law
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid and Elder Law
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Resources
    • DocuBank
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
      • Elder Law Resources
        • Carmel, Indiana Elder Resources
        • Fishers Indiana Elder Law Resources
        • Greenfield, Indiana Elder Law Resources
        • Greenwood Elder Resources
        • Indianapolis Elder Law Resources
        • Lawrence Elder Law Resources
        • Plainfield Elder Resources
        • Zionsville Elder Law Resources
    • Estate Planning
      • Estate Planning Checkup
      • Estate and Gift Tax Figures
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Alzheimer’s and Dementia
      • Asset Protection Planning
        • Business Succession Planning
      • Challenging an Indiana Will
      • Elder Abuse
      • Elder Law
        • Medicaid
        • Medicaid Planning
        • Planning for Long-Term Care
      • Estate Planning
        • Avoiding Estate Taxes
        • Estate Planning for Parents
        • Frequently Asked Questions for Families Without an Estate Plan
        • LGBTQ Estate Planning
        • Women and the Need for Estate Planning
      • Financial Planning
      • How Divorce Impacts Your Estate Plan
      • Incapacity Planning
      • Legacy Wealth Planning
      • Pet Planning
      • Philanthropy in Your Estate Plan
      • Probate
      • Power of Attorney
      • Serving as Trustee
      • Small Estate Administration
      • Trusts
        • Trust Administration
        • Trust Administration
        • Serving as Executor
      • Testamentary Trusts
      • Understanding Your Social Security Retirement Benefits
      • Updating Your Estate Plan
      • Veteran Benefits
      • Wills
        • Contesting a Will
    • Newsletter
    • Pre Consultation Form
    • Probate and Trust Administration
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss Of A Loved One
      • Probate Resources
        • Carmel, Indiana Probate Resources
        • Greenfield Probate
        • Greenwood Probate
        • Indianapolis Probate
        • Plainfield Probate
        • Indiana Probate
        • Zionsville Probate
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Areas We Serve
    • Boone County
      • Lebanon
      • Zionsville
    • Hamilton County
      • Carmel
      • Fishers
    • Hancock County
      • Greenfield
    • Hendricks County
      • Brownsburg
      • Plainfield
    • Johnson County
      • Franklin, Indiana
      • Greenwood
    • Marion County
      • Central Indiana
      • Indianapolis
  • Blog
  • Contact Us

Frank & Kraft, Attorneys at Law

Indianapolis Estate Planning Attorneys

CONNECT WITH US TODAY(317) 684-1100

Attend a Free Workshop
Home » What Is Considered a Countable Asset for Medicaid

What Is Considered a Countable Asset for Medicaid

May 1, 2019Medicaid

countable asset for Medicaid

If you have even a rudimentary estate plan in place already, you are ahead of the game considering the fact that over half of all Americans do not have any type of estate plan in place. Do not stop there though. While even a simple estate plan is better than no plan, creating a comprehensive plan can help you achieve a wide range of inter-related goals. For example, as you near retirement age, Medicaid planning should be part of your estate plan. As part of your Medicaid planning component, you will need to understand what is considered a countable asset for Medicaid eligibility purposes in Indiana.

Why Do You Need to Worry about Medicaid Eligibility?

For many people who have relied on employer-sponsored or privately funded health insurance, the need to qualify for Medicaid has never been a concern. If you are one of those people, you first need to understand why you might find yourself turning to Medicaid as a senior. During your retirement years, the need for long-term care (LTC) may result in the need to qualify for Medicaid. With the average cost of LTC both across the nation and in Indiana coming in at around $100,000 a year nationwide for 2018, the average person cannot afford to cover that cost out of pocket. Although Medicare will likely cover most of your healthcare costs as a senior, it will not pay for LTC nor will most basic health insurance plans unless you purchased a separate LTC insurance plan. Consequently, over half of all seniors needing LTC turn to Medicaid for help with the cost of that care because the Medicaid program does pay for LTC expenses.

Is It a Countable Asset for Medicaid Eligibility Purposes?

Knowing that Medicaid covers LTC expenses is good news; however, you must qualify for Medicaid for that news to actually help you. Because Medicaid is a needs-based program, an applicant must demonstrate financial need to be approved. To do that, both your income and your countable resources (assets) must be below the program limits. The “countable resources” limit is very low in most states, including Indiana. An individual applicant cannot have countable resources worth more than $2,000. If you do have excess assets at the time you apply, your application will be denied and you will have to “spend-down” your assets before applying again. This is what is often referred to as the Medicaid “spend-down” rule. Fortunately, some assets are exempt, meaning they do not count toward your “countable resources,” including:

  • Personal effects and household goods.
  • Your home, up to an equity limit of $572,000 if you are planning to return or you have a spouse, a child under 21, or a disabled person residing in it.
  • One motor vehicle if it is worth less than $5,000 of the current market value. If the vehicle is used for the long term care recipient’s medical treatment, employment, modified to accommodate a disability, or the primary vehicle of the community spouse then it is exempt no matter the value.
  • Life insurance is considered income in the month it is received, but dividends from life insurance fall into the asset category, to be no higher than $1,500. Note that interest on dividends from a life insurance policy is not exempt. If life insurance has a face value of $10,000 or less and the beneficiary is the policy holder’s estate or the funeral home, it is exempt.
  • Burial spaces and irrevocable pre-paid burial trusts if tied to specific funeral or burial services.
  • Series E/EE Saving Bonds interest, I Bonds interest.

How Can Medicaid Planning Help?

By incorporating a Medicaid planning component into your estate plan early on you can rest assured that your income and assets will fall within the program eligibility limits to ensure that you qualify for Medicaid if you need it in the future.

Contact Indiana Medicaid Planning Attorneys

For more information, please download our FREE estate planning worksheet. If you have specific questions about what is a countable asset for Medicaid eligibility, or about Medicaid planning in general, contact the experienced Indiana Medicaid planning attorneys at Frank & Kraft by calling (317) 684-1100 to schedule an appointment.

  • Author
  • Recent Posts
Paul A. Kraft, Estate Planning Attorney
Paul A. Kraft, Estate Planning Attorney
Paul Kraft is Co-Founder and the senior Principal of Frank & Kraft, one of the leading law firms in Indiana in the area of estate planning as well as business and tax planning.

Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
Paul A. Kraft, Estate Planning Attorney
Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
  • Will Medicaid Pay a Family Member to Care for Me in Indiana? - September 26, 2023
  • Challenging a Will in Indiana Based on Lack of Testamentary Capacity - September 21, 2023
  • The Spendthrift Beneficiary: Protecting Assets from Reckless Spending - September 19, 2023

Other Articles You May Find Useful

Indiana Medicaid
Will Medicaid Pay a Family Member to Care for Me in Indiana?
Seniors Medicaid Indiana
What Seniors Need to Know about Medicaid in Indiana
Dollarphotoclub
5 Medicaid Myths Dispelled
Indianapolis Medicaid planning attorney
Medicaid Programs for Seniors in Indiana
Avoid Medicaid spend-down
Protecting Assets Often Requires Avoiding Medicaid Spend-Down
Indianapolis Medicaid attorney
What Is a Medicaid Trust?

Primary Sidebar

Frank & Kraft, Attorneys at Law

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

Blog Subscription

Signup for our blog to receive our latest estate planning insights!

Where We Are

Frank & Kraft Attorneys at Law
135 N. Pennsylvania Street Suite 1100
Indianapolis, IN 46204-2485
Phone: (317) 684-1100
Fax: (317) 684-6111

See Larger MapGet directions

Office Hours

Monday8:00 AM - 5:00 PM
Tuesday8:00 AM - 5:00 PM
Wednesday8:00 AM - 5:00 PM
Thursday8:00 AM - 5:00 PM
Friday8:00 AM - 5:00 PM

Map

frankkraft_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
footer-logo

Frank & Kraft Attorneys at Law
Attorney Advertisement

© 2023 American Academy of Estate Planning Attorneys, Inc.

© 2023 · American Academy of Estate Planning Attorneys, Inc. | Disclaimer | Privacy Policy | Sitemap | Contact Us