In order to qualify for Medicaid benefits in Florida, you need to prove that you have little or no assets. But what if you do? There are several ways of spending down your assets to qualify.
Pay off your debts
The first and most obvious way to spend down your assets is by paying off debts you owe. This includes credit card bills, personal loans, mortgages or car payments. While this may not seem like a good idea if you’re trying to save money, in the short term for Medicaid eligibility purposes, it will ensure that you have fewer assets or funds.
Consider irrevocable medical trusts
If you have assets of more than $2,000, an irrevocable trust may be the best option to spend down your assets. When you establish this type of trust with a Florida trustee, they will manage your trusts and investments on behalf of yourself or other beneficiaries. Just remember that the process of creating an irrevocable trust for Medicaid planning takes time to do everything right.
Another way of spending down assets for Medicaid is to do major repairs to your home. You can make the repairs and deduct any costs on taxes while reducing assets for Medicaid purposes. It’s a win-win situation because you get more value out of your property while also getting Medicaid benefits when needed.
Repairing your car is another way to spend-down your assets. Of course, you lose out on the value of your car if it’s too old or costly to repair, but you can still get Medicaid benefits.
Getting Medicaid benefits may seem like an impossible task for someone with a lot of assets. However, you can take a few steps to spend them down and qualify for assistance.