If you’re thinking about your future, you might be considering what will happen when you can no longer safely live on your own. At that point, you might need to move into a nursing home, which can cost thousands of dollars every month. Many seniors use Medicaid to pay for this expense, but what if your net worth is too high to qualify for this needs-based program?
That’s when Medicaid planning is recommended, as you’ll need to use certain legal strategies to ensure the value of your assets isn’t too high to get the monetary benefits you need for long-term care. At the same time, you don’t want to lose the assets you’ve worked so hard to get, especially if you have family members you wish to inherit your valuable assets. Consider how a Michigan Medicaid and asset protection attorney can help you qualify for Medicaid while keeping your assets, and then contact the Law Office of Shannon DeWall, PLLC, for legal advice.
What Are the Medicaid Asset Limits in Michigan?
Medicaid is a needs-based government program, meaning there are limits on the value of the assets you own if you want to qualify. As of 2025, the limit of assets you can own is $9,660 for a single applicant and $14,470 for a couple, but the limit may change periodically. In addition, there are certain exceptions to know about before determining if your assets disqualify you for Medicaid.
First, if you’re married and only your spouse needs long-term care, you can keep half of the assets you and your spouse own together. This is due to the Community Spouse Resource Allowance, which ensures you’re not left without the assets you need to support yourself when your spouse applies for Medicaid. Depending on your net worth, you may be able to keep more or less of your assets, which your lawyer will clarify after reviewing your case.
Another detail is that the asset limit only applies to countable assets, not exempt assets, which are considered essential. Some examples of exempt assets include your personal belongings, household goods, one vehicle, prepaid burial plots, and your primary home, up to the current equity limit.
Any assets that are not exempt are considered countable, such as vacation properties, cash, retirement accounts, checking accounts, and investments. If you’re unsure of the value of your countable assets or believe they exceed the asset limit for Medicaid, contact our Michigan law firm for legal guidance on your next steps.
Can You Sell or Give Away Assets to Qualify for Medicaid?
If your countable assets are above the limit, you might be tempted to sell or give them away until you’re eligible for Medicaid. While this is a valid option called a Medicaid spend down, there are certain rules to follow to ensure there are no delays in your Medicaid application.
The spend-down process lets you spend your countable assets on qualified expenses, such as medical bills, certain home repairs, and prepaid funeral and burial plans. It’s essential to make sure you don’t spend your assets on unqualified expenses or give them away to family.
This is because there is a five-year look-back period that allows the government to review your asset transfers within the past 60 months of submitting your Medicaid application. If it’s clear you gave your assets to family or sold them below fair market value in the past five years to qualify for Medicaid now, you might have to wait longer for benefits.
Instead of risking your eligibility for Medicaid, you should speak with a Michigan Medicaid and asset protection lawyer to learn which legal strategies you can use to qualify. A knowledgeable attorney can tell you if your assets are over the limit and what to do if they are, since there are a few popular legal options aside from the spend-down process.
What Legal Strategies Can You Use to Protect Your Assets?
If you don’t want to spend your assets because you wish to leave them to family when you pass away, you can move them out of your name so they’re not counted in your asset limit when you apply for Medicaid. The easiest way to do this is by setting up a trust.
In particular, you can create a Medicaid Asset Protection Trust (MAPT), a type of irrevocable trust. This option requires you to choose a trustee to manage the trust for you, as you’re not allowed to control or benefit from the assets in the trust during your lifetime.
To ensure the assets in the trust are not included in your countable assets, you must create the trust at least five years before you apply for Medicaid. In addition, in certain states – including Michigan – your home may be treated as a countable asset even if it’s in a trust.
For this reason, you should seek legal advice before creating a MAPT to protect your assets. A lawyer will ensure you know how MAPTs work and can let you know the pros and cons of other types of irrevocable trusts that may work for you, such as funeral trusts and special needs trusts. Scheduling an initial consultation with a Michigan law firm can streamline the Medicaid planning process, so call today.
How Can a Michigan Medicaid and Asset Protection Attorney Help You?
Qualifying for Medicaid isn’t always as simple as filling out an application and awaiting approval. You’ll need to make sure your assets don’t put you over the asset limit in this state first, and if they do, you’ll benefit from finding legal strategies to resolve this issue without losing them.
When you contact the Law Office of Shannon DeWall, PLLC, our attorney will carefully review your financial situation before advising you on the legal strategies that will work for you. If you’re ready to plan your future, call 734-366-4463 today.