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Achieving Medicaid eligibility by liquidating assets

When Medicaid is granted in a Texas guardianship, there might still be unique limits imposed. This federal and state program exists to overcome the income challenges of Americans who need ongoing medical aid. The program is chiefly funded by the U.S. government, so those who qualify for assistance must meet a set criteria. The funding of the agency is set each year, and its amount doesn’t increase once ruled. For this reason, not everyone will easily qualify.

The income limits of Medicaid

For persons in guardianships who seek residence in an institutional/nursing home, you have an income cap of $2,349 a month. The asset limitation for the same residence category is roughly $2,000. These numbers are considered competitive or even disqualifying to some. What you’ll find is that eligibility has its benefits, but that finding a good fit does take time. Keep in mind that as long as you have a financial plan for your medical care, there are ways to ensure that you qualify.

Spending down for financial eligibility

Even in legal guardianships, an estate owner has the option of spending down their estate values. Asset and income spend downs are similar but unique and approached differently. Spending down assets, specifically, calls for you to donate or give assets away. Limiting monthly income, however, is the concept behind the income caps of Medicaid. Anyone with unlimited revenue only shows the government their ability to pay for their medical care.

Qualified income trusts

The qualified income trust is another option you have to adjust your eligibility. This trust takes your surplus income and stores it with a trustee. The trust, being the new owner of your surplus, avoids the accounting of Medicaid. By using QIT trusts, you can adjust your eligibility for:

  • In-home care
  • Assisted living services
  • Nursing home care
  • Institutional Medicaid

Guardianships and nursing homes in Texas

You have a right to care for your personal health. Paying for your medical needs is what Medicaid exists for, so keep an open mind as you adjust your estate to make the qualification.