The primary classification of assets under the Medicaid rules is whether an asset is countable or non-countable. But there’s a special class of resources that is both countable and non-countable – an exception to the general rule: the unavailable resource.
Put simply, an unavailable resource is an asset that would normally be countable but is not treated that way because the facts and circumstances of a particular situation show that it cannot be sold by the Medicaid applicant for legal reasons. An example would be an interest in ongoing litigation. Another example would be this case in a Texas appeals court. The case says that because the defendant was incapacitated, her resources should not be counted because no one could liquidate her life insurance resources. The Court held as follows: “If a property right cannot be liquidated, the property will not be considered a resource . . . .” [B]ecause Marroney’s assets could not be liquidated during most of the disputed period, those assets could not satisfy the regulatory definition of “resources” during that time.”
Unfortunately if you don’t meet the requirements, you have to assume all your countable resources are considered available.
If you think some of your countable resources should be unavailable, make sure you consult with our Medicaid planning attorney before you apply for Medicaid. Call us at (712) 737-3885 to get started!
