The Ohio Medicaid program is undergoing a great deal of change. One of those changes is the treatment of the primary residence of applicants seeking long-term care coverage.
Home Equity Limit
An individual’s primary residence is excluded as a resource. However, the home equity cannot exceed $552,000. This limit now applies to all individuals applying for long term care or Waiver services.
Assets Transferred in and Out of a Revocable Trust
Assets transferred into or out of a revocable trust do not affect the assets status as exempt resources. Hence, a primary residence transferred into a revocable trust does not affect the home’s status as an exempt resource. Further, a primary residence transferred out of a revocable trust is no longer treated as an improper transfer.
Prior to this policy change, many individuals with Revocable Trusts were being penalized for maintaining a Revocable Trust for probate avoidance purposes. This change in policy takes away the dangers of the Revocable Trust instrument.
Always Contact an Ohio Medicaid lawyer prior to filing a Medicaid application to ensure eligibility and explore planning options.