To qualify for Medicaid in Florida, you must meet certain income and asset limits. Single applicants can earn up to $2,829 per month and have assets up to $2,000. For married couples, the combined income limit is $5,658 per month, with assets up to $3,000.
Many people need to reduce their income and assets to qualify. This process – also called “spend-down” – helps you qualify for Medicaid’s long-term care services while protecting your wealth and ensuring your family’s financial security.
So, how do you spend down strategically? Here are three ways:
Invest in exempt assets
Investing in exempt assets helps you keep financial value in forms that Medicaid does not count in your accumulated monthly income or assets. This includes:
- Making repairs or improvements to the home you live in
- Fixing your car or selling it at market value to buy a new one
- Buying personal items like clothing, furniture or household goods
- Setting aside funds in an irrevocable funeral trust
Keep detailed records of all transactions to show that your spend-down activities are legitimate and follow Medicaid rules. It’s important to work with an experienced attorney to ensure your strategy follows state and federal regulations.
Open a Qualified Income Trust (QIT)
A Qualified Income Trust (QIT), or Miller Trust, helps Medicaid applicants by placing excess income into a QIT. Since this reduces your income, it helps you meet the required limits. The trust funds can also help cover medical expenses, personal needs and other allowable costs.
Create a Personal Care Agreement
A Personal Care Agreement is a contract between a caregiver (often a family member) and the care recipient. It details the care services, hours, pay rate and payment schedule. This written, legally binding document helps you meet the eligibility requirements by paying for legitimate care services and meeting Medicaid’s asset and income limits. It also ensures the care recipient gets necessary services while compensating the caregiver.
You don’t have to sacrifice your hard-earned assets
You deserve both quality long-term care and financial stability. With the right planning and professional legal guidance, you can make that happen.