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MEDICAID SPEND DOWNS…read on:
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.
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