What Assets Are Allowed When Filing for Medicaid?

Medicaid is the largest public program for long-term care in the country, according to the Centers for Medicare and Medicaid Services. However, for the services to begin when applying for it, a person must have used up his own resources to pay for care and be nearly destitute (no more than $2,000 in countable assets in 2010) before Medicaid begins covering costs. Some assets are allowed, though, even if they take the person's assets over the $2,000 limit.

Homes

• Nursing home residents do not have to sell their homes to qualify for Medicaid, though this may vary from state to state. Principal residences under $500,000 (as of 2010) are non-countable, and some states may use a limit of $750,000 (as of 2010). In states where it may be considered countable, it is only in situations where there is not expectation that the resident will return home. If only one spouse is entering the nursing home, the other spouse may remain in the house without it being considered a countable asset for the person entering the nursing home.

Vehicle

• One motor vehicle is excluded from countable assets but it must be used by the person in the nursing home or a household member, according to ElderLawAnswers.com. A second vehicle may, depending on the particular state rules, be exempted if it is needed for health or self-support reasons, according to ElderLawAnswers.com.

Personal Property

• Personal property is generally not listed as a countable asset. Items in this category would include furniture, clothing and jewelry. Since each state has its own Medicaid program, there may be state-to-state variations according to value of these items.

Money

• A small amount of money is excluded from the countable assets. However, the money must be set aside specifically for funeral plans and life insurance. If the person has income, it must be paid to the nursing home except for a monthly personal allowance that is set by the state Medicaid program. Other deductions from the income include enough to pay for uncovered medical costs and to provide an allowance to a spouse or dependent child.