medicaidplanner Staff asked 4 years ago
Are mobile homes treated as assets by Medicaid or are they considered homes and therefore exempt?
medicaidplanner Staff answered 4 years ago
Mobile homes, also called trailer homes, are considered to be homes (or “homesteads”) by Medicaid. One’s home is considered to be an asset by Medicaid, but in most cases, it is considered to be exempt, or in other words, it is not counted towards Medicaid’s asset limit.
As further explanation, there is an asset limit that must be met in order to be eligible for long-term care Medicaid. For a single applicant, the limit is generally $2,000. For married couples, the asset limit is more complicated and depends on if one (or both spouses) are applying for Medicaid benefits. See state-specific asset limits. That said, there are several higher valued assets that are not calculated towards the asset limit, and as mentioned above, one’s home generally falls in this category.
For the home, including a trailer home, to be considered exempt, it must be the Medicaid applicant’s primary home. This means it is the home in which the applicant resides. Furthermore, the applicant must have an equity interest in the home no greater than a state-specified value. To calculate one’s equity interest, any debts on the home are subtracted from the fair market value of the home, which determines the home’s equity value. For persons that solely own the home, the equity interest is the same as the equity value. For persons that own the home with one other person, the equity interest is half of the equity value.
If the applicant does not live in the home, it may still be considered exempt from Medicaid’s asset limit. For instance, if the applicant relocates to another residence, such as a nursing home, has an equity interest under their state’s limit, and expresses an “intent” to return to the home. Furthermore, the home is automatically exempt if the applicant’s spouse, minor child, permanently disabled child, or blind child lives in the home.
In regard to mobile homes, the Medicaid applicant does not have to own the land on which the mobile home is set. It still remains exempt from Medicaid’s asset limit, given the above criteria are met.