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Long Term Care Guide

Resource Eligibility

All resources owned by the applicant, or have the applicant's name on them are counted towards the applicant's resource limit.

What is counted as a resource?

  1. PROPERTY- Property, such as houses or land owned solely or jointly by the applicant would be considered his/her resource, with some exceptions:
    • If the property is still occupied by a spouse, dependent adult child or an adult child who has cared for the applicant, it could be excluded.
    • If the applicant intends to return to his/her home and is competent to state such in writing, the property may be excluded.
    • If the property is income-producing, such as rental property, in some specific cases it can be excluded.
    If the property does not meet any of the above situations, it may need to be sold at Fair Market Value and the proceeds used to pay for the applicant's care. The applicant may be eligible while the property is being sold, as long as certain conditions are met. Upon the applicant's receipt of the money from the sale of the property, Medicaid would stop payment. When the money from the sale of the property is exhausted, the applicant may reapply.
    The Fair Market Value of any car or cars owned solely or jointly by the applicant would be counted as a resource. Other motor vehicles such as motorcycles, boats, trailers, etc would be counted at fair market value. One car may be excluded if it meets certain provisions for its use.
    Any liquid asset owned solely or jointly by the applicant will be considered to belong entirely to him/her, unless proof is provided to show ownership by another person.
    • The current value of any stocks or bonds would be considered a resource.
    • The current balance of any certificates of deposit, money market accounts, or checking or savings accounts would be considered resources.

    An applicant can set aside $1,500 for burial. This $1500 would not be counted as an available resource.

    Money paid to a funeral home to purchase burial space items including the casket, the vault, the opening and closing of the grave, and the burial plot would not be considered as a resource.

    An irrevocable burial trust up to $10,000 may be established that may be excluded.


    If the applicant has any type of funeral agreement, and other burial resources such as life insurance or an account set aside for burial, they both may count towards the total resource limit.

    • If the applicant has a pre-need funeral agreement that is considered to be irrevocable for Medicaid purposes, its value counts toward the $1,500 burial allowance, providing certain provisions are met.
    • If the applicant has life insurance which funds an irrevocable funeral contract, it also counts toward the $1,500 burial allowance.
    • If the applicant has a pre-need funeral agreement that is not irrevocable, the burial space items (see above) are excluded and the remainder counts towards the $1,500 burial allowance.
    • If the face value of the life insurance is $1500 or less, it can be excluded under the life insurance exclusion.
    • If the face value of the life insurance is more than $1,500 the cash surrender value is considered a resource. If the life insurance policy is designated for burial purposes, $1,500 of its value may be excluded under the burial exclusion.

Other Resources

The prior categories of resources take into account most resources. However, other resources may also be counted. The financial eligibility social worker case manager assigned to the case at the time of your initial interview will discuss Medicaid policy and how Medicaid may consider certain resources. In cases with trusts or other legal instuments, the type of resource may have to be discussed with the policy administrator to determine how Medicaid policy would apply. Each case is considered based on it's unique set of resources.

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