Ask the Experts!
The professionals at Advanced Underwriting Consultants (AUC) answer the tax questions posed by producers. Here’s the question of the day.
Question: How much can a person keep while still qualifying for Medicaid in Tennessee?
Answer: If a person qualifying for Medicaid is single, that person can keep up to $2,000 in non-exempt assets and $30 a month in income.
A home with up to $506,000 in equity and a car are exempt assets—they don’t count.
For a married couple where one spouse is qualifying for Medicaid and the community spouse is not, the community spouse is generally allowed to keep all income that is paid just to her. If the income paid to her does not exceed this amount, she can keep up to $1,822 (in 2011) per month of income paid to the couple for the community spouse’s needs.
There are all kinds of strategies, exceptions and risks associated with planning to qualify for Medicaid. To make matters more complex, each state has its own rules regarding Medicaid qualification, how much the spouse can keep, and whether certain strategies will work.
We strongly recommend that financial professionals refer their clients with Medicaid planning questions to a local attorney who specializes in such matters.
Have a question for the professionals at AUC? Feel welcome to submit it by email. We may post your question and the answer as the question of the day.