For many elderly individuals, Medicaid becomes crucial to obtain medical care in their later years. However, because Medicaid is a needs-based program, it has income guidelines that must be followed. Thus, many seniors must spend down their assets to meet Medicaid income guidelines. If you find yourself in this position, here are some tips regarding elder care law and how to spend down your assets to qualify for Medicaid.
Not All Assets Must Be Spent or Sold
To qualify for Medicaid, a person is not required to spend or sell all of their assets. In fact, many assets, which are referred to as non-countable assets, may be kept in one’s possession. The most common of these include a home, car, furnishings, prepaid funeral plans, and limited amounts of cash, which can be as much as $3,000 for a couple.
What are Considered Acceptable Expenses?
When spending down your assets to qualify for Medicaid, federal law states that there are numerous expenses that are considered legitimate expenses. These can include making payments on a car, home, credit cards, and medical bills. Along with these, utility payments, home and auto maintenance costs, and caregiver expenses are also acceptable expenses. In addition to these acceptable payments, a senior may also use their money to purchase a new home or car, so long as they will be living in the home or they or their spouse will be the driver of the new vehicle.
Asset Transfers
In certain situations, a senior may be allowed to transfer certain assets, such as a home, to their child if the child is also their primary caregiver. However, since estate law varies from state to state, it’s best to consult lawyers who specialize in elder care law to help with these matters.
Barry E. Janay, Esq. is a seasoned New York and New Jersey attorney with over 20 years of legal experience, focusing on estate planning, probate, business law, and complex legal matters. As the founder of The Law Office of Barry E. Janay, he provides strategic, results-driven legal guidance to individuals and businesses navigating high-stakes decisions.
Barry has served as senior counsel and general counsel across multiple industries, bringing deep expertise in regulatory compliance, contracts, and corporate strategy. Known for his direct, no-nonsense approach, he helps clients resolve legal challenges efficiently while protecting their long-term interests.
He is admitted to practice in New York, New Jersey, and multiple federal courts, and has been recognized for his professional excellence and client-focused advocacy.
