Medicaid Asset Protection Guide
Medicaid long-term care has strict asset limits — typically $2,000 for an individual. But not all assets count. Understanding which assets Medicaid "sees" and which are exempt can mean tens of thousands of dollars in protection. This guide walks through the countable vs. exempt distinction, helps you estimate your countable total, and outlines legal planning strategies.
Asset Calculator: Countable vs. Exempt
Your Countable Assets
Legal Asset Protection Strategies
Medicaid Asset Protection Trust (MAPT): Irrevocable trust that removes assets from Medicaid count after the 5-year lookback period. Must be set up at least 5 years before applying. Most powerful tool for planning ahead.
Spousal Protections (CSRA): When one spouse enters nursing home care, the Community Spouse Resource Allowance protects up to ~$148,620 for the at-home spouse (2026). The spouse also keeps a minimum monthly income allowance.
Spend-down on exempt items: Pay off mortgage, buy a newer car, make home improvements, or prepay funeral expenses using countable assets — converting them to exempt assets legally.
Caregiver child exemption: A home can be transferred to a child who has lived with the parent and provided care for 2+ years, preventing them from entering a nursing home. Must meet strict criteria.
Annuities (Medicaid-compliant): Converting countable assets to income stream through a Medicaid-compliant immediate annuity can accelerate eligibility for the community spouse while providing income.
⚠ Medicaid rules vary significantly by state and are extremely complex. The strategies above, if done incorrectly, can trigger disqualification periods. Always consult a licensed elder law attorney before taking any action. Find one at naela.org (National Academy of Elder Law Attorneys).