The Listen to Lawrence Letter: Medicaid Spend Downs

CLIENT QUESTION:

Is there a list of other spend downs of money that are exempt and will not be counted as an asset that Medicaid will not go after?

MY RESPONSE:

Yes. There are ways to spend down assets without causing a Medicaid penalty.

You don’t have to “lose everything.”

Some common examples (although it depends on the circumstances):

• paying off debt
• fixing up the house
• prepaying a funeral
• buying a car

In these situations, you’re using your money for yourself. Medicaid is generally fine with that.

The problem starts when people make gifts, even well-intentioned gifts, which create a penalty during the 5-year lookback.

There’s no one rule that covers everything. It depends on your facts. But done right, this and other techniques can save a lot of money, even at the last minute.

I hope this helps.

And, if anyone you know would like to receive this

Listen to Lawrence Letter, just have them email me at

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As always, please send me your questions. If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

Let’s stay connected.

Stay safe!