The issues that most frequently arise concerning eligibility for medicaid are income and resources(assets).
Medicaid considers only the income of the person who is seeking medicaid based on the name on the check rule. In 2012 the income limit is $2,094 per month. For someone who has income in excess of this limit, a Qualified Income Trust(Miller Trust) will allow the applicant to still meet the eligibility requirements as far as income.
Under Medicaid, some resources are counted and some are not. The limit on countable resources is $2,000.00. Howver, a home is not a countable resource if it is located in the state where the application is made and its value is less than $525,000.(for Texas). Also not counted are one motor vehicle of any kind and an irrevocable pre-need funeral plan. Money in cash or in the bank is a countable resource.
Medicaid does allow for some income and resources to be set aside for a healthy spouse.
Since the home is not a countable resource, do not sell the home without consulting with an elder law attorney.
There is a transfer penalty for anything given away or sold for less than fair market value within 5 years prior to the medicaid application. Don’t give anything away except as part of a plan developed in consultation with an elder law attorney.