When it comes to second residences and rental property, the Medicaid rules are pretty clear that they aren’t exempt. However, there may be ways to preserve these assets as part of the asset preservation planning process. There are a lot of possible solutions and, although tricky, it just takes the right possible solution matched to the client’s circumstances to deal with these properties and hopefully gain a positive outcome.
In this Elder Law Minute, Wes Coulson, Illinois Elder Law attorney, continues with the series What You Can and Can’t Keep with Medicaid and discusses second residences and rental property and if they may be considered exempt relative to Medicaid eligibility.
What you can and can’t keep with Medicaid: Second Residences and Rental Property
Transcript:
Hi, I’m Wes Coulson and this is your Elder Law Minute. Speaking again on the general subject of what assets the Medicaid rules do and don’t allow you to keep, let’s talk about second residences and rental property.
They {second residences and rental property} are not considered to be exempt assets. So, unless you happen to have such a property that has a small enough value that for a married couple it can be part of the asset allowance of the community spouse, it’s just not an asset that you can keep consistent with eligibility.
So, quick answer as to the question of, “Well, how do you deal with them?” We’re looking for ways to preserve the property as part of the planning. That can get tricky. There are a lot of possible solutions, and it’s a matter of matching which one is going to be best, given all of our client’s circumstances. So, I hope that helps a little bit on another difficult, complex subject. Thanks.
For more information on Medicaid and Asset Preservation, visit these articles:
- Think Twice Before Deeding Your Residence to Your Children
- What you can and can’t keep with Medicaid: Farm Land – Part A
- What you can and can’t keep with Medicaid: Farm Land – Part B
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Dent-Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Dent-Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (877)995-6876 or Contact Us and we will get in touch as soon as possible.
