Does Medicaid planning involve removing all assets?

Being proactive about potential issues that could come up later in life is wise. Many Pennsylvania residents may end up needing long-term care for various reasons, and they certainly do not want to end up struggling financially or putting their family members in a difficult financial spot due to expenses. Fortunately, Medicaid planning may be able to help.

Because qualifying for Medicaid hinges on a person’s financial information, many people make the effort ahead of time to ensure that they meet the requirements. This can happen by spending down and removing assets, but that does not necessarily mean that a future Medicaid applicant must be left with nothing. In fact, the program allows applicants to maintain various assets.

When it comes to liquid assets, like cash, the limit is $2,000 for an unmarried person 65 or older. For assets that are more difficult to liquidate, a person can maintain a primary residence, a vehicle used for transportation, nonrefundable prepaid funeral and burial funds, life insurance policies and other exempt assets. As a result, it is important that individuals understand what they can keep and what could put them at risk of not qualifying for this financial help.

Some people may feel uneasy about Medicaid planning because they are not fully aware of what would help and what might hinder the application process. Fortunately, experienced Pennsylvania attorneys can help interested parties understand their options for this type of planning. Having professional assistance could better ensure that individuals understand how rearranging and removing assets could help, what actions could penalize qualification chances, and more.