What Counts as an Asset?

To qualify for Long-Term Care Medicaid, an applicant’s countable assets must be at or below the state’s limit, which is $2,000 for a single person in most states in 2026. Medicaid also calls assets resources. Knowing which assets count, and how they are valued, is the first step in understanding whether someone qualifies and how much may need to be spent down. This guide explains the basics.

Figures change periodically. Double-check current amounts before relying on them.

Countable vs. exempt assets

Medicaid divides what a person owns into two groups:

• Countable assets are added up and compared with the state’s limit.
• Exempt (non-countable) assets are ignored, no matter their value, as long as they meet the rules.

The idea comes from the federal Supplemental Security Income (SSI) program, which most states use as the starting point for their Long-Term Care Medicaid asset rules. States can be more generous, and several are. See Exempt assets for the items that usually do not count.

Assets that usually count

The following are generally countable:

• Cash, including cash kept at home.
• Checking and savings accounts, money market accounts and certificates of deposit (CDs).
• Stocks, bonds, mutual funds and brokerage accounts.
• Retirement accounts such as IRAs and 401(k)s, in many states. Some states exempt them or treat them differently when they are paying out. See Retirement accounts.
• The cash value of life insurance, when the total face value of the person’s policies is above the exclusion (often $1,500). See Life insurance.
• Real estate other than the home, such as a vacation home, land or a rental property, unless an exemption applies.
• A second vehicle, and sometimes the first if the state limits its value. See Vehicles.
• Revocable living trusts. Assets in a trust the person can change or cancel are counted as theirs.
• Annuities that can be cashed in, and some that cannot, depending on how they are set up.
• Money owed to the person, such as a loan they made that can be collected.
• Savings bonds and other cashable investments.
• Health savings accounts in many cases.

How assets are valued

Medicaid counts the equity value of an asset: what the person could get for it, minus any debts against it.

• Bank accounts: the balance, usually on the first day of the month (some states use the lowest balance in the month, or the balance on the day of application).
• Investments: current market value.
• Real estate: fair market value minus mortgages and liens. States may use the tax-assessed value or ask for an appraisal.
• Life insurance: the cash surrender value, not the death benefit.
• Vehicles: what the car would sell for, minus any loan.
• Retirement accounts: usually the amount the person could withdraw, sometimes after early-withdrawal penalties and taxes, depending on the state.

Whose assets count

• A single applicant: only their own assets, including their share of anything owned jointly.
• A married applicant: the countable assets of both spouses are added together, no matter whose name they are in. The spouse at home then keeps a protected share called the Community Spouse Resource Allowance (CSRA), which is $32,532 to $162,660 under the 2026 federal standards.
• Jointly owned assets: bank accounts held with someone else are often counted entirely as the applicant’s unless the other owner can show they put in the money. Real estate owned jointly is usually counted by the applicant’s share. See Joint bank accounts.

When assets are counted

Assets are generally measured as of a specific date:

• Eligibility is usually checked month by month. In most states, a person must be at or below the limit on the first day of the month (or at some point in the month, depending on the state) to be eligible for that month.
• For married couples, a “snapshot” of the couple’s assets is taken on the first day of the first continuous stay in a nursing home or hospital expected to last 30 days or more. This sets the CSRA.

Income vs. assets: the “month of receipt” rule

Money a person receives is usually income in the month it arrives. Whatever is left on the first day of the next month becomes an asset. For example, a Social Security check deposited on the third of the month is income in that month; any part still in the account on the first of the next month counts toward the asset limit.

This matters for people already on Long-Term Care Medicaid. Unspent allowances, refunds and small inheritances can slowly push a person over the limit.

Assets that are hard to sell

An asset counts only if the person has the legal right to sell or use it. If an asset truly cannot be sold, for example a share in property where co-owners refuse to sell, it may be treated as unavailable and not counted. The person usually must show they made a real effort to sell it. States differ on what proof they want.

Getting under the limit (spend-down)

If countable assets are above the limit, a person can spend down by using the excess on things that are allowed, at fair value. Common examples:

• paying for care;
• paying off debts, including a mortgage, car loan or credit cards;
• home repairs and improvements;
• buying a prepaid funeral plan, within state rules;
• buying exempt items, such as a replacement car or household goods;
• paying for medical equipment, hearing aids, dental work or eyeglasses.

Giving money away is not a spend-down. Gifts can cause a penalty under the look-back.

Because the right spend-down choices depend on the person’s state and situation, families often work with a Certified Medicaid Planner (CMP) to avoid spending money that could have been protected.

Worked example

Margaret is single and lives in Ohio, where the 2026 asset limit is $2,000. She owns:

Countable assets: $6,500 + $18,000 + $4,200 = $28,700. Margaret is $26,700 over the limit. She could spend down on her care, home repairs, debts, or other allowed costs until she reaches $2,000.

Reporting assets

Every countable asset must be reported on the application. The caseworker will usually ask for statements, often going back 60 months for the look-back. Leaving out an asset can lead to denial, repayment demands or fraud charges.

Common questions

Does the home count? Usually not, as long as the applicant lives there, intends to return, or a spouse or dependent relative lives there, and the equity is below the state’s limit. See Your home and Medicaid.

Does money in a child’s name count? Not if it truly belongs to the child. But if it is the parent’s money in the child’s name, the state may treat it as the parent’s.

What about money owed to me? A loan you made that can be collected is usually a countable asset.

A simple way to list your assets

Before applying, it helps to make a list of everything the applicant (and spouse, if married) owns. A simple table works:

1. Write down every account and item: bank accounts, investments, retirement accounts, insurance policies, real estate, vehicles, and anything else of value.
2. Note who owns it: the applicant alone, the spouse, jointly, or with someone else.
3. Write the current value and any debt against it.
4. Mark whether it is likely countable or exempt, using the lists above and the Exempt assets guide.
5. Add up the countable items and compare with the state’s limit in the asset limits chart.

This list becomes the starting point for the application and for any spend-down plan. It also shows quickly whether a spouse at home’s allowance or other protections will matter.

Assets people often forget

Caseworkers find these items in bank and tax records, so it is better to list them up front:

• Old savings bonds kept in a drawer or safe deposit box.
• Small whole life policies bought decades ago.
• Accounts at a second bank, credit union or brokerage.
• Cash value in an annuity bought years ago.
• A share of inherited property, such as a parent’s land owned with siblings.
• Money held by someone else for the applicant, such as a relative who “keeps it safe.”
• Refunds and deposits owed, such as a security deposit or a prepaid service that can be refunded.
• Contents of a safe deposit box, such as cash, coins or jewelry held as an investment.

How assets and the look-back connect

The asset limit looks at what someone owns now. The look-back looks at what they gave away in the past 60 months (in most states). Both matter. A person can be under the asset limit today and still face a penalty because of earlier gifts. When the caseworker reviews bank statements for asset values, they will also be looking for transfers.

When to get help

If the list includes a home, retirement accounts, a business, rental property, jointly owned assets or past gifts, or if the applicant is married, the rules quickly become complicated. A {L} can review the list, explain which items count in your state, and help plan a spend-down that does not waste money that could be protected.

Related guides

• Exempt (non-countable) assets
• Asset limits by state
• Common financial mistakes to avoid
• Spousal impoverishment rules
• State guides

Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.