What types of assets are exempt from being counted in determining Medicaid eligibility?

In Texas, a number of assets are exempt from being counted when determining Medicaid eligibility. These exempt assets include a person’s primary residence, the value of pre-paid funeral and burial expenses, personal property, small amounts of cash or cash equivalents, a vehicle, certain life insurance policies, and specific items necessary for self-support. Additionally, any asset which a person has transferred to a family member with a fair-market value of $500 or less per month is not counted as part of the assets. Further, a person’s spouse is permitted to retain a certain amount of the couple’s joint assets, known as a Spousal Resource Allowance, which is dependent on their living area. Income and assets from certain trusts for individuals under the age of 65, such as Special Needs Trusts, are excluded from Medicaid eligibility determinations. Additionally, some trusts and annuities may be excluded from counting as an asset if the annual income generated by these vehicles is used to pay for the medical expenses of the individual. For example, a Qualified Income Trust can be set up to pay for the beneficiary’s living expenses, thereby allowing them to maintain their Medicaid eligibility. Texas Elder Law also allows for people to make gifts and transfers of assets in order to reduce the amount of assets they possess and meet the eligibility requirements for Medicaid. Gifts or transfers to family or charitable organizations must be made at least 5 years prior to filing an application for Medicaid in order to be excluded from consideration in the eligibility determination. In short, Texas Elder Law provides numerous protections and exemptions to ensure that individuals are able to maintain their Medicaid eligibility while still preserving their assets.

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What types of assets are exempt from being counted in determining Medicaid eligibility?

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