What does it mean to spend-down assets?
In order to qualify for Medicaid benefits, an applicant must spend down his or her assets to the allowable limit. Certain allowable non-countable transfers may be made for the purchase of services or goods for personal use for fair market value, creation of a supplemental needs trust for a disabled adult child, payment of legally incurred debts, or for certain other expenses expressly allowed in the Medicaid regulations. The following are commonly allowed non-countable transfers that will not affect Medicaid eligibility: Prepay anticipated income taxes, insurance, medical, nursing, legal or accounting fees. Pay off lawsuit judgments and settlements. Establish and fund a supplemental needs trust for a disabled adult child (the regulations do not permit funding of a supplemental needs trust for a disabled grandchild). Pay deposits and ongoing costs for assisted living facilities or nursing homes. Pay off existing credit card bills and other debts for goods and services previously purchas
