Introduction
Medicaid applicants need to meet an asset limit to qualify, but not all assets are counted toward that limit. Some are exempt, and the rules governing this status can be complex and may change depending on the state and situation. For example, primary vehicles are exempt and secondary vehicles are counted, but a tractor needed for a farm might be exempt, or a fishing boat could be exempt if fishing is essential to the applicant’s food supply. Below is a brief overview of the asset limit and its variations, followed by a thorough list of assets and their impact on Medicaid eligibility.
In most states in 2026, the individual asset limit to qualify for Medicaid long-term care is $2,000. However, this limit can change depending on the state, the applicant’s marital status and the type of Medicaid program they’re applying for – Nursing Home Medicaid, Home and Community Based Services (HCBS) Waivers or Aged, Blind and Disabled (ABD) Medicaid. For example, the individual asset limit is $1,600 in Connecticut, $17,500 in Illinois and $130,000 in California. For married couples, with one or both spouses applying for ABD Medicaid, there is a combined asset limit of $3,000 or $4,000 in most states, but again this can vary – it’s $43,781 in New York and $12,137.55 in Missouri, for example.
The rules are different for married couples applying for Nursing Home Medicaid and HCBS Waivers. When both spouses are applicants, each spouse is usually treated as an individual applicant and is generally permitted up to $2,000 (again, this is state-specific). Even if only one spouse is an applicant, Medicaid still considers the assets of a married couple to be jointly owned. However, the applicant spouse can usually keep up to $2,000, and the asset limit for the non-applicant spouse can be as much as $162,660, depending on the state and the couple’s financial situation. This is due to the Community Spouse Resource Allowance, which does not apply to ABD Medicaid.
Seniors must meet their asset limit when they are applying for Medicaid and beneficiaries must meet it again on an annual basis during their Medicaid renewal. It’s important to note that the assets of a non-beneficiary spouse are not counted toward the beneficiary’s asset limit during renewal when it comes to Nursing Home Medicaid and HCBS Waivers. For ABD Medicaid, it’s a combined couple asset limit, regardless of if one or both spouses are applicants.
Applicants are not allowed to simply give away their assets to get under Medicaid’s eligibility limit. To make sure they don’t, Medicaid uses the Look-Back Period. In most states, the Look-Back Period is 60 months (five years), which means the state will look back into the applicant’s financial history for the 60 months before they applied to see if they gave away any assets or sold them at less than fair market value. If they have, their application will be denied and they will face a penalty period of ineligibility that could last months or even years. The Look-Back Period only applies to Nursing Home Medicaid and HCBS Waivers, it does not apply to ABD Medicaid. Learn more about the Look-Back Period, including its exceptions in California and New York.
The primary home of a Medicaid applicant/beneficiary can be exempt from the asset limit under many circumstances.
• If the Medicaid applicant/beneficiary lives in the home, and they meet their state’s home equity interest limit, the home will be exempt. Home equity interest is the portion of the home’s equity value the applicant/beneficiary owns minus any outstanding debt. The home equity interest limit in most states in 2026 is either $752,000 or $1,130,000.
• If the Medicaid applicant/beneficiary’s spouse, minor child, or blind or disabled child of any age lives in the home, it is exempt regardless of where the applicant/beneficiary lives or their home equity interest.
• If the Medicaid applicant/beneficiary does not live in the home, but they file an intent to return statement and meets the state’s home equity interest limit, the home is exempt.
There is one exception to these rules – the home equity interest limit does not apply to ABD Medicaid.
In terms of Medicaid, a home can be a single-family dwelling, a multi-family building, a condominium, a co-op apartment, a house boat or a mobile home, with or without land. The home must be the applicant or beneficiary’s primary home, it can not be a second home or a vacation home. Homes used for rental properties or businesses are governed by different rules, which are discussed below.
Certain assets are easily categorized as counted or exempt, but there are also many gray areas and nuances, like with a home as described above. A piece of farmland is another example. It might be counted or exempt depending on where it’s located, what it’s used for and how productive it is. A retirement account may be counted, or not, depending on the state, the account’s payout status and the applicant’s marital status.
The alphabetized list below includes all types of assets, from joint bank accounts to timeshares to RVs, and their status as a counted or exempt asset for Medicaid purposes. For more in-depth information on any of these assets, or for assets that may not be on the list, connect with our team of professionals.
Airline miles – Since they have no cash value and the terms and conditions of these programs forbid liquidating the miles in any way, airline miles are likely to be exempt from the asset limit. However, a state with aggressive Medicaid policies could try to count them. Or, if the miles could be redeemed for cash, they would likely be counted.
Appliances – Household appliances are exempt regardless of their value. The only exception may be if an appliance was purchased and kept as an investment instead of as a practical household tool.
Art – Art kept for investment reasons will be counted. Art kept for personal reasons can be exempt. However, there can also be gray areas. For example, if the applicant’s adult child is an established artist and has given them several valuable pieces. Resolutions for situations like this are usually state-specific.
Bank accounts – Checking accounts, saving accounts, money market accounts, credit union share accounts and all other bank accounts that are held in the name of the Medicaid applicant or beneficiary are counted. This includes the total value of most joint bank accounts, which are discussed below.
Boats – If the boat is used as a primary vehicle, or if it’s used as a home and meets the conditions that would make a home exempt (see above), then the boat can be exempt. If the boat is an essential part of a valid business that is currently operating, or can be expected to be operating within 12 months (in most states), then it can be exempt. If the boat is used to fish for personal consumption and this is a necessary source of food for the applicant/beneficiary, it can also be exempt. If the boat is only used as a secondary or recreational vehicle, it will be counted.
Bonds/CDs – Bonds and Certificates of Deposit (CDs) are considered assets and can be counted. This includes treasury bonds, corporate bonds, municipal bonds, international government bonds, agency bonds, green bonds, Bond EFTs, traditional CDs, jumbo CDs and other types of CDs.
Businesses – The assets of a business that is essential to the support of a Medicaid applicant/beneficiary can be exempt as long as the business is valid, the assets are essential to the business, the assets are currently in use or are expected to be in use (in some states) within a reasonable time frame (generally 12 months). Many states also require the applicant (or their spouse) to be actively contributing to the business. Exempt business assets can include necessary equipment, land and structures. Most states will exempt the entire worth of business assets, but some states set a limit.
Business shares – Any closely held business interest, also known as business shares, can be counted as an asset if the business is not essential to support the Medicaid applicant or beneficiary. However, business interests or shares can also be exempt if the structure of the business makes it impossible for the applicant or beneficiary to liquidate their interest in the business.
Burial space – Any burial space owned by the Medicaid applicant/beneficiary or their spouse can be exempt from the asset limit, even if the space is intended for use by their family members.
Cars – Any car, regardless of value, can be a primary vehicle for the Medicaid applicant/beneficiary and be exempt. If a car is a necessary part of a valid business that is essential for self-support and currently operating, or can be expected to be operating within 12 months (in most states), it can also be exempt. Cars that are not primary vehicles will be counted. All of this can also apply to trucks, vans, motorcycles and most other motorized vehicles, including boats, snowmobiles and even airplanes. However, it does not apply to RVs, campers and motor homes.
Cash – Any type of currency is considered an asset and can be counted.
Collectibles – High-priced collectibles kept for investment reasons can be counted. Inexpensive collectibles kept only for personal reasons can be exempt.
Clothing – Almost all pieces of clothing are considered personal items and are exempt without limit. There may be an exception if a piece of clothing was purchased and kept for investment reasons.
Deferred annuity – The cash value of a deferred annuity, or any annuity that is not a Medicaid Compliant Annuity, will be counted toward the asset limit.
Equipment/machinery – Any equipment/machinery that is a necessary part of a valid business that is essential for self-support and currently operating or expected to be operating with 12 months (in most states) can be exempt. The entire worth of the equipment or machinery is exempt in most states, but some set a limit. Most states also require the applicant or their spouse to be actively involved in the business for its equipment to be exempt, but not all states.
Exchange-traded funds – Exchange-traded funds (ETFs) and mutual funds are considered assets and their total value can be counted.
Farmland/gardens – If the farmland or garden is used by the applicant/beneficiary to grow their own food or graze their own livestock, up to $6,000 of its value can be exempt. If the farmland or garden is a necessary part of a valid business that is essential for self-support and currently operating or expected to be operating with 12 months, its full amount can be exempt regardless of its worth or production rate. If the farmland or garden is rented out and produces an annual income of at least 6% of its equity value, up to $6,000 of its value can be exempt, and some states allow more than $6,000 to be exempt. Income from rental property can count toward the income limit, with some deductions also allowed, but that is beyond the scope of this article. Farmland or gardens that are contiguous with the primary residence can be considered part of the residence and can be exempt if the residence is exempt.
Furniture – Almost all pieces of household furniture are exempt regardless of their value. The only exception may be if furniture was purchased and kept as an investment instead of for practical use.
Irrevocable Funeral Trusts – These trusts pay for funeral/burial expenses, and they are exempt from the asset limit up to a certain value, which ranges from $1,500 to no limit in some states, although it should be a reasonable amount. Learn more about Irrevocable Funeral Trusts and how they can impact Medicaid eligibility.
Jewelry – Jewelry that is kept for personal reasons can be exempt, including valuable items such as engagement rings or family heirlooms that may not worn but are kept for personal reasons. Expensive jewelry purchased and kept for investment purposes can be counted.
Jointly owned assets/bank accounts – The total value of jointly owned assets or bank accounts can count toward the applicant’s asset limit. The value is not halved if there are two owners or two names on the account. However, a jointly owned asset might be exempt if the non-applicant co-owner can not or will not liquidate the asset.
Life insurance – Term life insurance does not impact Medicaid eligibility, but whole life insurance can impact it. In most states in 2024, whole life insurance policies with a face value of $1,500 or less are exempt. If their face value is more than $1,500 (or the combined face value of all the policies an applicant owns), then the cash value of the policy (or policies) will count against the asset limit.
Living trusts – Any asset(s) in a living trust, also known as a revocable trust, grantor trust or inter vivos trust, can be counted toward the asset limit.
Medicaid Asset Protection Trusts – Any in a Medicaid Asset Protection Trust is exempt from the asset limit, including homes. However, these trusts violate the Look-Back Period so they must be created and used at least five years (in most states) before the senior wants to apply for Medicaid for them to be effective.
Medicaid Compliant Annuities – As long as the annuity meets the qualifications to be Medicaid compliant, its value will not count against the asset limit. Monthly payments from annuities do count toward the income limit of the applicant or beneficiary. Learn more about Medicaid Compliant Annuities.
Mobile homes – These are considered homes by Medicaid and can be exempt, or counted, depending on the criteria discussed above under How Home Ownership Impacts Medicaid Eligibility. The Medicaid applicant or beneficiary does not have to own the land on which the mobile home sits for it to be considered a home or for the mobile home to be exempt if it meets the requirements.
Mutual funds – Mutual funds and exchange-traded funds (EFTs) are considered assets and their total value can be counted.
Precious metals and gems – Most precious metals and gems will be counted. Exceptions may be made if they are an essential part of a personal item, like a gold wedding band or a diamond engagement ring.
Personal items – All personal items can be exempt without limit. This includes things like wedding rings, family heirlooms and clothes. However, if any of these items are being kept for investment reasons, they can be counted.
Rental property – Up to $6,000 of the value of home rental properties like apartments and cottages can be exempt as long as they produce an annual income of at least 6% of the property’s equity value, or can be expected to produce that in the near future. If the property is worth $7,500, for example, then $6,000 would be exempt and $1,500 would be counted. Some states allow more than $6,000 to be exempt, with Florida being an extreme example by allowing the full value of all rental properties to be exempt as long as they produce income consistent with fair market value. Income from rental property can count toward the income limit, with some deductions also allowed, but that is beyond the scope of this article.
Retirement accounts – IRAs, 401(k)s, 403(b)s, Keoghs and TSAs can all be exempt or counted, depending on the state, the payout status and the applicant’s marital status. To find out the exact details, click here.
Rewards programs – Hotel reward programs, Disney vacation points and other similar programs typically have no cash value and the terms and their conditions prevent liquidating the rewards in any way, so they are most likely exempt from the asset limit. However, states with aggressive Medicaid policies could try to count them. Or, if the points or rewards can be redeemed for cash, they would likely be counted.
RVs, campers, motor homes – These can not be considered primary vehicles and are usually counted. However, some states may exempt them if they serve as the primary home for the Medicaid applicant or beneficiary.
Stocks – Publicly traded stocks are considered assets and their full value can be counted.
Storage lots – Lots used to store boats, cars or similar items can be exempt up to $6,000 as long as they produce an annual income of at least 6% of the property’s equity value, or can be expected to produce that in the near future. Some states allow more than $6,000 to be exempt, with Florida being an extreme example by allowing the full value of all rental properties to be exempt as long they produce income consistent with fair market value. Income from rental property can count toward the income limit, with some deductions also allowed, but that is beyond the scope of this article. If the storage lot is a necessary part of a valid business that is essential for self-support and currently operating or expected to be operating again within 12 months, its full amount can be exempt regardless of its worth or production rate. Storage lots that are contiguous with the primary residence can be considered part of the residence and can be exempt if the residence is exempt.
Supplies – Any supplies that are a necessary part of a valid business that is essential for self-support and currently operating or expected to be operating again within 12 months (in most states) can be exempt. This can include things like chemicals, computers, lumber and other supplies essential to the business. The entire worth of the supplies is exempt in most states, but some set a limit. Most states also require the applicant or their spouse to be actively involved in the business for its supplies to be exempt, but not all states.
Timber lots/forest land – If a timber lot or forest land is used by the applicant/beneficiary for their own firewood, up to $6,000 of it can be exempt in most states, and some allow more. If the forest land or timber lot is a necessary part of a valid business that is essential for self-support and currently operating or expected to be operating again within 12 months, its full amount can be exempt regardless of its worth or production rate. If the timber lot or forest land is rented out and produces an annual income of at least 6% of its value, up to $6,000 of it can be exempt in most states with some allowing more. Income from rental property can count toward the income limit, with some deductions also allowed, but that is beyond the scope of this article. Timber lots or forest lands that are contiguous with the primary residence can be considered part of the residence and can be exempt if the residence is exempt.
Vacation/second homes – A home that is not the primary residence of the beneficiary, not used as rental property and not an essential part of a valid business will be counted.
Vehicles – Most vehicles, regardless of value, can be a primary vehicle for the Medicaid applicant/beneficiary and be exempt. If the vehicle is a necessary part of a valid business that is essential for self-support and currently operating, or can be expected to be operating within 12 months (in most states), it can also be exempt. Vehicles that are not primary vehicles will be counted. This can apply to cars, trucks, vans, motorcycles and most other motorized vehicles, including boats, snowmobiles and even airplanes. However, it does not apply to RVs, campers and motor homes.
Wedding rings – These are considered personal items and are exempt up to any limit.
