The Washington Medicaid asset limits can feel very overwhelming if you are in the beginning stages of planning for Medicaid. Especially when it comes to things like the Medicaid car exemption in Washington, you may not know whether or not this will allow you to keep your car. Understanding what assets you can and cannot keep when applying for Medicaid is essential. So, keep reading to find out if you can keep your car on Medicaid, and if so, how you can go about doing this without running into problems.
Understanding Medicaid Eligibility Rules in Washington
The most important aspects of meeting the Medicaid eligibility rules are understanding the income and asset limits. These should be researched on a case by case basis since they are subject to change year to year and vary significantly depending on the situation. For instance, your eligibility is often based on the type of Medicaid you are applying for, whether you are single or married, and the level of care you need.
Depending on your situation and unique needs, you will then need to meet Medicaid income and asset limits. A simplified example of the eligibility criteria for a single nursing home applicant is as follows: nursing home level of care, a total income under $2982 a month, and assets valued under $2000.
It’s also important to understand that just about any type of income you receive will be counted towards your income limit. This can include things like pension payments, SSDI, SSI, stock dividends, employment wages, alimony payments, and IRA withdrawals.
Countable Vs. Non-Countable Assets
Understanding the Medicaid eligibility rules gets even more complicated when you are looking at countable and non-countable assets. Medicaid has an asset limit, much like the income limit, which can include most types of assets. For example, cash, bonds, bank accounts, cryptocurrency, and certain types of real estate are often counted as assets.
However, Medicaid has some exempt assets in Washington, which include things like household furnishings, irrevocable burial trusts, your primary residence, personal belongings, and a single automobile.
When Is a Vehicle Considered Exempt?
As you can see from the list of non-countable assets, the car ownership Medicaid eligibility rule allows for one vehicle. If you have more than one vehicle, these additional vehicles will be counted toward the asset limit unless you can prove they are significantly damaged or undrivable.
Here are some of the ways you can prove that an additional vehicle is necessary:
- You need the vehicle for work.
- You need the vehicle to get to medical appointments.
- Your vehicle is modified for a disabled individual.
- You need your vehicle for rural area transportation.
Should I Put My Car In a Trust?
Like most other types of assets, it is possible to put a car into a trust as a way of protecting it from Medicaid’s eligibility criteria. However, for most people, this isn’t necessary since Medicaid already allows you to keep one exempt vehicle.
If you have more than one vehicle and wish to keep all of them, you can use a revocable or irrevocable trust. But you will need to keep in mind that this can complicate things, especially when it comes to the documents for the vehicle, such as the title ownership. You may also need to make changes to your auto insurance if your vehicle is owned by a trust.
It is always best to first consult with an elder law attorney before putting any type of asset into a trust. An attorney will have a better understanding of Medicaid’s eligibility criteria and can help you avoid running into penalties when protecting your assets.
Can I Gift or Transfer a Vehicle Before Applying for Medicaid?
As a general rule, it isn’t recommended to try to gift or transfer a vehicle to another person before you apply for Medicaid. If you attempt to do this, you could potentially violate Medicaid’s look-back period, which could result in your application being denied or you losing your benefits.
However, you could try to sell your vehicle to a loved one instead of simply gifting or transferring it to them but it must be sold for fair market value.
Planning Tips for Keeping or Replacing a Vehicle
When applying for Medicaid long-term care benefits in Washington, you need to have a strategy. Especially if you have a vehicle or multiple vehicles, you need to have a plan in place so that you do not go over the asset limit.
Here are some options you have when applying for Medicaid with vehicles:
- Make any necessary repairs to your primary vehicle before applying for Medicaid.
- Sell a vehicle you already have and spend-down on necessary expenses, such as debts or disability modifications to your home.
- Buy a new vehicle during the spend-down period to replace an older vehicle you already have.
If you aren’t sure what is and isn’t allowed, an estate planning attorney can help you with this process.
Get in Touch With an Elder Law Attorney Today
If you want to know more about vehicle transfers and Medicaid penalties, reach out to an elder law attorney at Legacy Law Group. Contact us today at 509-315-8087 to speak with one of our attorneys to get the process started.
FAQ
Can I keep my car if I apply for Medicaid in Washington?
In most cases, yes. One car is considered to be an exempt asset in Washington and won’t be counted towards the asset limit. You may also be able to keep additional vehicles depending on their value and how they are used.
Can I transfer my car to a family member to qualify for Medicaid?
Transferring any type of asset to a family member before applying for Medicaid generally isn’t recommended. It is very tricky to do this without triggering a Medicaid penalty or potentially putting your eligibility at risk.
Should I put my car into a trust before applying for Medicaid?
Although it is possible to put a vehicle into a trust before you apply for Medicaid, this isn’t a one-size-fits-all solution. To determine whether or not this is the right fit for you, you should first consult with an elder law attorney.
