A countable asset is anything Medicaid counts toward the limit during spend-down for nursing home care. Cash, bank accounts, stocks, bonds, mutual funds, certificates of deposit, extra vehicles, vacation homes, rental property, and other non-primary real estate count.
Spend-down means using excess countable assets until you meet the limit. According to Elder Law Answers, a single applicant in most states must reach about $2,000 before qualifying Medicaid asset rules guide. Some states set a slightly higher limit.
Medical information disclaimer: This article is for general educational purposes only and does not provide medical advice, diagnosis, or treatment. Always consult a physician or other qualified health professional about symptoms, medications, tests, or treatment decisions.
Official resource:
- Read the official guidance from Wisconsin — Use this primary source to verify the official guidance.
Table of Contents
- Which money and property count?
- What stays outside the countable total?
- How do home rules work?
- How can families spend down without a penalty?
Which money and property count?
The Social Security Administration lists cash, checking and savings accounts, stocks, bonds, mutual funds, and certificates of deposit as resources SSI spotlight on resources. These accounts count because they can pay directly for care. Statements for every account help families see the countable total quickly.
Additional vehicles, vacation homes, rental property, and other non-primary real estate also count. They count because they can be sold and converted to cash. For dementia caregivers, this often means a second car, a vacant lot, or a family cabin.
What stays outside the countable total?
Elder Law Answers notes that one vehicle used for the applicant or a household member is excluded regardless of value. Clothing, furniture, household goods, and personal jewelry are also excluded. These items do not move the spend-down total.
The Social Security Administration excludes burial plots for the applicant and immediate family. It also excludes up to $1,500 in designated burial funds each for applicant and spouse. Life-insurance cash value is excluded when total face value is $1,500 or less.
How do home rules work?
The Wisconsin Department of Health Services explains the principal residence is generally excluded when the applicant lives there, intends to return, or a spouse or dependent relative lives there, subject to state rules. That protection matters when dementia care starts with a short nursing-home stay.
Federal law still denies nursing-facility coverage when home equity exceeds the state limit, reports the Centers for Medicare and Medicaid Services in its 2026 standards bulletin 2026 Medicaid standards by state. For 2026, CMS set that range at $752,000 to $1,130,000. The limit does not apply when a spouse, minor, blind, or disabled child lives there.
How can families spend down without a penalty?
When one spouse enters a nursing home, the spouse at home may keep far more. ElderLawAnswers, citing federal CMS standards, places the 2026 Community Spouse Resource Allowance at $32,532 to $162,660, while the institutionalized spouse stays near $2,000. The exact allowance depends on state rules.
Use excess countable assets for needs, not gifts. Federal law bars gifts or below-market transfers within 60 months before applying and imposes a period of ineligibility under 42 U.S.C. Section 1396p, according to the House Office of Law Revision Counsel federal Medicaid transfer rules. Keep receipts for every payment and ask the state agency before moving money.
- pay past-due debts, medical bills, and nursing-home charges
- pay for needed care, equipment, and home repairs
- buy exempt items such as household goods or prepaid burial arrangements
