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Chapter 13. Medicaid > Half-a-Loaf Giving

Half-a-Loaf Giving

If you have too many countable assets to qualify for Medicaid coverage, the advice from Medicaid is to spend down those assets until you reach the level of Medicaid eligibility. For a single person, that is a mere $2,000 of countable assets. However, you can use a technique, commonly referred to as half-a-loaf giving. It works like this: you give away some of your assets, keeping enough assets to cover your costs during the resulting ineligibility period rather than give away all of your assets to qualify for Medicaid. The technique is called half-a-loaf giving because in many instances, even when planning is done at the last minute, you are able to shelter as much as half or even more of your assets. The formula takes into consideration the actual cost of your present care or future nursing home care, the average private pay monthly cost for your state, your monthly income and the value of your assets to determine how much you can safely give away and still have enough money to cover your needs during the ineligibility period brought about by your gift.

Some people also choose to hedge their bet when making gifts or setting up trusts by purchasing a long-term care policy that will cover them for whatever period of disqualification they may incur.


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