Watch Your Language: Asset

Orange City Iowa Estate Planning

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Need proof that the Medicaid rules are confusing? Consider: an “asset” and a “resource” are not the same thing.

In the Medicaid world, the term “asset” is used when discussing Medicaid’s transfer penalty rules. As a result, “asset” includes both income and resources. [Read More]

But they are related.

Remember that a “resource” is anything a person owns that must be evaluated to determine eligibility. And recall that “income” is anything a person receives that can be used to meet their basic needs.

In the Medicaid world, the term “asset” is used when discussing Medicaid’s transfer penalty rules. As a result, “asset” includes both income and resources.

The whole reason to consider both income and resources as assets is for purposes of determining what the penalty period is. The value of income as an asset is its present value, or the amount you would pay for an immediate annuity that generates a payment equal to the amount of income you gave away. Confused yet?

Fortunately, the experts at Huizenga Law can help you navigate the nuances of this difficult area of law. Call us at at (712) 737-3885 today!

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