• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Potter Law Firm

North Carolina and Kentucky Estate Planning Attorneys

phone iconNC (704) 944-3245
KY (606) 324-5516
Attend A Free Seminar - KY Attend A Free Webinar - NC/SC THIS IS AN ADVERTISEMENT

  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Fort Mitchell
        • Independence
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Davidson
        • Huntersville
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Links
      • Elder Law Reports
      • Local Elder Law Resources
        • Ashland Elder Resources
        • Covington Senior Resources
        • Huntersville Elder Law Resources
        • Independence Senior Resources
    • Elder Law Reports
    • Emergency Legal Documents
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • Newsletters
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG
Home » Elder Law » A Look at Adjusted 2020 Medicaid Figures

A Look at Adjusted 2020 Medicaid Figures

January 11, 2020 by John Potter

Medicaid planningAs elder law attorneys, we place a significant focus on the process of Medicaid planning. The reason why this jointly administered federal/state government health insurance program is relevant may come as a surprise to you.

If you work and pay taxes for at least 10 years, you will qualify for Medicare when you reach the age of 65 under currently existing laws. Even if you have not met this requirement, if you are married and your spouse has done so, you would become eligible based on their work record.

For the most part, Medicare exists to address the health care needs of senior citizens. Because of this, you would assume that it would cover living assistance since many elders require custodial care. Many would say that it does not make sense, but Medicare will not pay for a stay in a nursing home or long-term care facility.

Medicaid will help with these costs, and this is why it should be on your radar when you are addressing the expenses that you may face as a senior citizen. You certainly do not want to pay out-of-pocket if you have an alternative, because long-term custodial care is extremely expensive.

Eligibility Parameters Updated

Medicaid is a need-based program, so there is an asset limit of $2000. Before you turn the page thinking that you could never qualify, you should know that some things do not count.

Engagement rings, wedding rings, and heirloom jewelry are not counted, along with personal effects and household items. One vehicle is exempt, and you can set aside a small amount of whole life insurance or other funds for final expenses.  Prepaid burial plots are not counted, and unlimited term life insurance is allowed.

The most valuable property that you may possess that is not a countable asset is your home, but there is an equity limit. This figure is updated every year to account for inflation, and in 2020, the limit is $595,000 in Kentucky and North Carolina.

When it comes to shared countable assets, if you are married and you are applying for Medicaid, your spouse is allowed to keep half of these resources. However, once again, there is a limit, and it has gone up this year. This is formally called the Community Spouse Resource Allowance, and the maximum is now $128,640.

Making other property non-countable or exempt from Medicaid spenddown takes some planning.

Under ordinary circumstances, almost all of an institutionalized spouse’s income would be contributed toward the cost of the care. This requirement is eased if the healthy spouse is relying on all or some of the income to maintain a reasonable standard of living. The community spouse would be entitled to a Monthly Maintenance Needs Allowance, and the maximum in 2020 is $3216.

Learn More About Important Elder Law Topics

Our attorneys have prepared three in-depth special reports that cover the three most pressing elder law issues. They are available to you free of charge, and you can visit the following page to access these valuable reports: Free Elder Law Reports.

Schedule a Consultation!

Written information is extremely useful, and there is certainly a lot of it to explore on this website. This blog has literally hundreds of different posts that cover every elder law and estate planning topic imaginable, and there are other free resources, including our estate planning worksheet.

Once you are fully informed, you will understand why it is extremely important to take the final step. Every case is different, and there is no one-size-fits-all, cookie-cutter estate plan. Your plan should be custom crafted to suit your needs, and we are well-positioned to provide the appropriate assistance.

You can schedule a consultation in North Carolina if you give us a call at 704-944-3245 (Charlotte, NC or Huntersville, NC), and the number in Kentucky is 606-324-5516 (Ashland, KY or Florence, KY). If you would prefer to reach out electronically, send us a message through our contact form and we will get back in touch with you promptly.

  • Author
  • Recent Posts
John Potter
Latest posts by John Potter (see all)
  • What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
  • How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
  • Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022

Filed Under: Elder Law Tagged With: Medicaid Planning, nursing home asset protection

Other Articles You May Find Useful

Medicaid estate recovery
Advocacy Groups Call for the Eradication of the Medicaid Estate Recovery Mandate
Medicare Part B premiums
An Overview of 2022 Medicare Cost Increases
elder financial abuse
Elder Financial Abuse Is a Looming Threat
Veterans Pension
This VA Benefit Can Give Seniors a Boost
long-term care planning
Will Medicare Cover Living Assistance?
nursing home asset protection Medicaid planning
Longevity Statistics Shed Light on Nursing Home Asset Protection

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
Texting Permission

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

Testimonials

default image

Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.

DKS & KMS Client Review August 28, 2020

default image

John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.

David J. Client Review August 28, 2020

default image

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.

Jillian Client Review August 28, 2020

<< Prev
Next >>

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map
potter law logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT