Medicaid Planning: Exempt and Countable Assets

Thanks for sticking with us over the past few weeks, as we have explored Nursing Home Medicaid more deeply. We know it can feel overwhelming and complicated. We are sharing this information so you realize that you have options to protect your income and assets while getting necessary skilled nursing care. This is called Medicaid Planning.

We have discussed Medicaid for married couples and individuals. Today, we will explain exempt and countable assets, which is a crucial topic for anyone navigating Medicaid eligibility. While the rules may seem complex, understanding how assets are categorized can make all the difference in securing benefits. The following is not a complete list, but is intended to highlight the most common assets.

What Are Exempt Assets?

Exempt assets are those that Medicaid does not count when determining eligibility. In Georgia, the following assets are considered exempt:

1. Home Place

• The applicant’s primary residence and any adjoining land and buildings are exempt (valued at up to $713,000 for a single applicant).

2. Household Goods & Personal Items- Your “stuff”.

• Furniture, decorations, appliances, and other household items are not counted.
• Personal belongings, such as clothing and jewelry, are also exempt.

3. Burial Exclusions

• Each applicant can set aside up to $10,000 for burial expenses. This amount may be in a prepaid funeral contract or a designated burial bank account.
• The face value of life insurance policies is applied toward this $10,000 exemption first.

4. Burial Space Items

• Burial plots for the applicant and immediate family and necessary items at the burial site are excluded.
• There is no dollar limit on burial space items.

5. Automobiles

• One vehicle is exempt, regardless of its value or whether it is in use.

6. Retirement Funds

• IRAs, 401(k)s, and other tax qualified investments are exempt if they are distributed in periodic payments that include a portion of the principal (for the individual going onto Medicaid).

What Are Countable Assets?

Countable assets are those that Medicaid includes when determining eligibility. In Georgia, an applicant’s total countable assets must not exceed $2,000. Exceeding this limit could result in a denied Medicaid application or loss of eligibility for current recipients.

Any money, property, or item that can be valued and converted into cash is considered a countable asset—unless it falls into the exempt categories listed above. These include:

1. Life Insurance Policies

• If the applicant has whole life or other permanent life insurance policies, the cash value counts as a resource once the burial exclusion limit has been met.

2. Bank & Investment Accounts

• Checking and savings accounts
• Stocks, bonds, mutual funds
• Certificates of deposit (CDs)
• Money market accounts
• Brokerage accounts
• Non-qualified or non-Medicaid compliant annuities

3. Other Countable Assets

• Any non-exempt real estate, including non-primary residences and land
• Additional vehicles beyond the one exempt car
• Titled recreational vehicles, timeshares, and investment properties

Why Medicaid Planning Matters

Understanding the difference between exempt and countable assets is critical when applying for Medicaid. Without proper planning, families may face denied applications, asset depletion, or loss of benefits. This is not the time to do it yourself (DIY). Planning correctly requires experience and expert advice and is often costly for families who don’t take the necessary steps.

Hurley Elder Care Law helps families navigate Medicaid rules, protect assets, and secure long-term care. Don’t risk your financial future—call us today at 404-843-0121 for a complimentary phone consultation with one of our intake coordinators. We are Georgia’s premiere elder care law firm.