Medicaid Protected Assets in Massachusetts

Medicaid is a federal and state program that offers healthcare coverage to those with limited income and resources. For individuals in Massachusetts considering long-term care, there may exist concerns about spending down their assets to qualify for Medicaid; but did you know some assets are protected? These assets are not counted when determining eligibility, ensuring that families stay within their entire life’s savings before accessing benefits.


What Counts and What Does Not

When applying for Medicaid in Massachusetts, knowing that not all assets are treated equally is essential. Let us break down which assets typically count towards eligibility limits and which ones are usually exempt:

Counted Assets:

  1. Bank accounts: The sum total of all personal checking and savings accounts.
  2. Stocks: Shares owned in a company or a mutual fund.
  3. Bonds: Debt securities, essentially lending money to companies or governments with the promise of periodic interest payments, plus the return of the bond’s face value when it matures.
  4. Non-primary residences or other real estate properties: Any property or land owned other than the main home where an individual resides.

Protected or Exempt Assets:

  1. Primary residence (up to a certain equity limit): The main house or apartment where an individual or family lives. In Massachusetts, it can be exempted up to a certain equity value.
  2. One vehicle: This can be a car, truck, or another mode of transport used for daily activities, irrespective of its market value.
  3. Personal belongings: Items like clothing, jewelry, and personal effects with sentimental rather than significant monetary value.
  4. Burial plots: Land or spaces in a cemetery reserved for the burial of the deceased.

Understanding the distinction between counted and exempt assets is crucial for informed decision-making when navigating Medicaid eligibility in Massachusetts.


How the Home Becomes a Protected Asset

For many, the primary residence is a significant asset. Fortunately, under certain conditions in Massachusetts, your home can be excluded from counted assets. If the Medicaid applicant intends to return home, or if a spouse or dependent relative lives in the home, it may become a protected asset. There are other nuances and specific criteria to consider, but the primary residence often stands as a pillar of security for many families.


Protecting Your Spouse’s Financial Well-being

A primary concern for numerous families is ensuring that the community spouse, that is the spouse who does not require Medicaid),can retain enough resources to live on. Massachusetts has provisions in place to address this. The community spouse can keep a specific amount of the couple’s combined assets, ensuring they are not left in financial hardship. The designated amount can change annually, so updating the latest figures is crucial.

Furthermore, protecting the community spouse’s financial well-being goes beyond asset allocations. There are also provisions concerning monthly income allowances to ensure a steady cash flow, helping to manage daily expenses and unforeseen financial challenges. Engaging with legal professionals well-versed in Medicaid rules in Massachusetts can help families better understand these nuances and prepare for a secure future.


Asset Transfer Rules and Look-Back Period

Transferring or gifting assets to qualify for Medicaid might seem tempting, but one must proceed cautiously. Massachusetts enforces a five-year look-back period. This stipulates that penalties could apply if you transfer assets for less than their fair market value within five years of applying for Medicaid. Such actions can result in periods where Medicaid eligibility is denied. Proper knowledge and foresight are key to navigating these challenges successfully.

Beyond the potential penalties, such transfers can also impact other financial aspects, like tax implications or future eligibility for other benefits. It is essential to realize that the look-back period does not just affect Medicaid applicants but also impacts those receiving their gifts or transfers. Therefore, a comprehensive approach that considers the broader picture of asset management and future implications is necessary. Collaborating with a seasoned law firm, like Casey Lundregan Burns, P.C. in Salem, Massachusetts, ensures that families make informed and strategic decisions concerning asset transfers and Medicaid planning.


Work with the Compassionate Attorneys at Casey Lundregan Burns, P.C.

Protecting your assets while navigating Medicaid eligibility in Massachusetts requires a thoughtful strategy and knowledgeable guidance. With over 80 years of experience assisting families in safeguarding their assets and planning for the future, the Casey Lundregan Burns, P.C., team is here to guide you through the complexities of Medicaid asset protection. Contact us today to ensure your assets are secured, and your family’s future is in good hands. We are here to assist you every step of the way. Please get in touch to schedule your case evaluation online or contact us at (978) 878-3519.