September 23, 2011

One point of eligibility for Medicaid is that applicants must not have assets worth more than $2,000. Assets include individual retirement accounts, stocks, checking and savings accounts, cash on hand, vehicles and residence/s.

If money has become too tight and you are in desperate need of financial health assistance, you might want to consider transferring some of your assets. This is an option provided by Medicaid. However, certain penalties may apply.

Here’s how you can transfer the title of your property in order to become eligible for Medicaid.

• Gather all your assets. Compute the cash value of all your existing assets and subtract $2,000 or $3,000 (if you’re married) from it. The difference will be the amount of property you have to transfer.
• Select the ones you really need. Since you will have to dispose some of your properties to be eligible for Medicaid, you have to determine the assets you need the most. Think about those you can live without and properties you think you’ll still need in the future.
• Process the transfer. Dispose of the properties at fair-market value and use the money you get to pay for other necessary expenses such as past-due medical expenses, prescription drugs and medical supplies you currently need. Keep the receipts and other documentation so you have evidence of how your assets were sold and how your cash was spent.
• Turn them in. Submit all documents to your local Medicaid office. There is usually a waiting period of 60 days before they consider your application. But if you are currently under the resource and asset limit, you may not have to wait. Your local Medicaid office will review all the documents. The processing your application will depend on the results of their evaluation.