A Medicaid professional consultant helping an elderly woman to protect her assets and money from the nursing home spend down.

Medicaid Home Exemption

Making home improvements for Medicaid exempt expenses

Paying Off Debt and Home Improvements

When planning for Medicaid, one of the most important things to consider is the debt in the estate. Individuals should conduct a debt inventory on a regular basis. There are two common debts that could affect the client. These include credit card debt and mortgage debt on the home. It is also essential that individuals uncover whether the debt is held individually or jointly. Some of these debts can be paid off without incurring any penalty from Medicaid. When dealing with debt, it is suggested you seek advice from a financial advisor or call Estate Street Partners at 1888-938-5872.

Medicaid Exempt Expenses (i.e. Medicaid Exempt Assets)

When an individual owns a home, there will be no Medicaid penalties involved with home improvements. Medicaid will view this as an exempt expense. This can be done whether the person is single or married. Home improvements can be made to prepare the home for a sale without any penalty as well. The improvements can include anything that is new to the home. This may include floor coverings, appliances, painting, driveway repair, insulation and window coverings. All of these improvements can be paid for as exempt expenditures as exempt assets from Medicaid. This is especially true in cases where there is a community spouse that will remain residing in the home after the applicant enters a nursing care facility.

The good thing about home improvements is that it will allow the well spouse to make many improvements on the home that could have been previously delayed due to the cost associated with caring for a sick spouse. The main goal of home improvements is to make sure that everything is done so that the well spouse can continue to live in the home without incurring further debt due to necessary repairs and updates.

Medicaid Home Exemption – Home Improvement to Reduce Medicaid Assets

Medicaid planning can be a difficult and complex issue. There are many things that can be done to protect assets. Many married couples will choose to use their money on home improvements as a Medicaid home exemption strategy. This will increase the value of the home while at the same time depleting some of the resources that will be considered when determining Medicaid eligibility.

All applicants should be aware of these situations that can help to protect assets and preserve the estate. The main focus should be making sure that the community spouse will still have available resources on which to live once the ill spouse enters a nursing home. These home improvements will not penalize the sick spouse and they will make for a better living arrangement for the community spouse when they are forced to place their loved one in a nursing home. The main goal of home improvements is to make sure that everything is done so that the well spouse can continue to live in the home without incurring further debt due to necessary repairs and updates.