Whether you’re applying for home care Medicaid or institutional Medicaid, there are assets that are exempt from the countable resources. These include retirement accounts such as IRAs, 401(k)’s and 403(b)’s, to name a few.
It also includes the money in an irrevocable preplanned funeral agreement, one vehicle and your home — You can qualify for Medicaid when you own a home. However, Medicaid may place a lean on that home, so it’s not something that we typically advise.
There are also exempt transfers that can be made that will not subject you to a penalty period. These are transfers to a spouse even in a institutional Medicaid situation. These include transfers to a disabled child or minor child, which you must really be careful of because you might be affecting benefits that the child is receiving. Also included is the caretaker child exemption, which relates only to your home and can be given to a child who is in the home for at least two years prior to your need for a nursing home.