Yes, You Can Protect Assets During a Medicaid Spend-Down

If you or a loved one is getting ready to apply for Medicaid to help with long-term care expenses, it’s easy to think you have to sacrifice everything you’ve built to become eligible.

Fortunately, that’s not the case.

Many Michigan families have more options than they realize—particularly with proactive planning. The right approach can help protect essential assets while ensuring you receive the care you need.

Spousal Protections: A Key Lifeline

A key tool for protecting family assets is the Community Spouse Resource Allowance (CSRA). This provision allows the healthy spouse who remains at home to retain a substantial share of the couple’s assets without jeopardizing the other spouse’s Medicaid eligibility.

In Michigan, the CSRA amount is updated annually. Depending on your unique circumstances, this rule can enable you to keep tens or even hundreds of thousands of dollars—assets that many families mistakenly believe must be spent down to qualify.

Other Strategies That Work

In addition to spousal protection, several other strategies may help safeguard your assets, depending on your situation:

• Exempt Transfers: Certain transfers, like those to a disabled child or into a trust for a spouse, can be made without penalty.
• Medicaid-Compliant Annuities: These allow you to convert countable assets into income for the healthy spouse, helping maintain the household’s financial stability.
• Medicaid Asset Protection Trusts (MAPTs): When set up well in advance, these trusts can move assets out of your name, shielding them from Medicaid calculations in the future.

Each approach involves detailed rules and timeframes. Beginning the process early gives you greater flexibility and protection.

Don't Navigate It Alone

Spend-down planning goes beyond just managing finances—it’s about ensuring your family’s peace of mind. Whether you’re looking ahead or responding to an unexpected need for long-term care, you don’t have to navigate this process by yourself.