What a beautiful day for a road trip! The sun is out, the temperature is pleasant (if you’re a penguin…), and we are going to have a great conversation about Medicaid for single people.
What Affects Qualifying for Nursing Home Medicaid for a Single People?
There are two main factors that affect qualifying for nursing home Medicaid. They are a person’s income and assets. The 2021 Medicaid income cap is $2,382 per month. This same number applies whether you are single or married. For anyone whose gross monthly income exceeds the cap, they can still become eligible for Medicaid, but need to take an additional step. That step is through a Qualified Income Trust (QIT), also be known as a Miller Trust.
We won’t get into details about QITs today because we are coming up to a good exit to pick-up lunch and want to concentrate on the important income and asset information before we stop driving. However, Hurley Elder Care Law is happy to discuss QITs with you if you give us a call at 404-843-0121 and you can also learn more here
What are the new asset limits for 2021?
In 2021, the asset limit is $2,000 for a single person. However, some good news is the following items do not count towards the Medicaid asset limits:
*Retirement Funds (like a 401(k), 403 (b), and IRA) (as long as distributions are being taken that include some principal).
*$10,000 in prepaid funeral or burial
*“Stuff” such as personal items, clothing, china, furniture and jewelry
Is protecting assets an option?
You may think Medicaid planning for single people isn’t worth it or can’t be done. That is completely false. We generally tell families we work with that we can save 50 to 65% of a single person’s assets above and beyond what Medicaid allows. Something can always be done!
We’re at the exit now and must decide if we are in the mood for a burger or a sub sandwich. Tough choices, I know! Next week we will discuss Medicaid for couples. Medicaid planning for couples can be complicated, but incredibly beneficial to the couple as we are often able to protect both income and assets. Proper planning sure does come in handy when paying for care and living expenses for each spouse.
Thanks for keeping us company on our long Medicaid road trip. We have many other topics to explore in coming weeks. Stay tuned!