"EXEMPT" ASSETS
WHAT YOU
(Plus whatever cash/value the State
allows -- $1,600 for a single, more for married couples)
Lisa
Nachmias Davis - Attorney at Law
www.sharinglaw.net
(revised 5-07)
The Basics*: What Can You Keep?
1. Your HOME (1-family, 2-family,
whatever) -- any value -- as long as any one of the following are living in it:
·
Your SPOUSE
·
Disabled or minor child
2. If no spouse or disabled/minor child lives
in the house, then equity in your home up to $750,000 (in CT) IF:
·
You are living in it (and in CT, you are "living in it"
if you can reasonably be expected to return to it within six months; after that
it's exempt only if listed on the market and you take any reasonable offer for
sale)
·
Sibling who is joint owner and has lived in home for 1+ years
·
NOTE: $750,000 limit is
still pending in regulations -- still a chance it could be only $500,000
You
are encouraged to take out a reverse mortgage to reduce the equity, if need
be. But if you are out of your home for
12 consecutive months you are not eligible for a reverse mortgage. Maybe your sibling would be?
3. Personal effects, furniture, TV, household
items, although at least in theory anything of
value, that you could sell easily or hold for
investment, isn't exempt.
4. Car:
·
If one spouse is at home and one in a nursing home (or receiving
home care "under the waiver" program), one car of any value.
·
If that doesn't apply, then one car of any value needed to
transport someone to work or to medical appointments.
·
Any handicapped-equipped vehicle.
5. Irrevocable Funeral Contract.
·
The State only allows these to be issued up to $5,400.
·
If you don't have one of these, a revocable contract of $1,500
(less the value of any insurance you have) is OK instead.
6. Burial Plot.
Includes a revocable "burial
trust" to pay for things like a casket or grave liner. You can have one plot for each of you and
spouse.
7. Term life insurance
("term" insurance = you pay a premium; it does not pay interest or
dividends; there is no cash surrender value, etc.)
8. Other life insurance policies
("whole" life or "permanent" life insurance, or universal) only
if FACE VALUE of all policies is $1,500 or less. This is very confusing. If the face value is $1,500 and the cash
value is $3,500, the whole thing is exempt.
If the face value is $1,600 and the cash value is $1,500, none is
exempt.
9. The equivalent amount to whatever your
10. Trusts, promissory notes, annuities: IT
DEPENDS – consult an attorney. Your
garden variety "living trust" or annuity is NOT PROTECTED.
11. Reparations -- if you get Holocaust or
internment reparations or payments from similar programs, these may be exempt.
12. Other Stuff that is "inaccessible" --
which gets very technical and legal and may involve a fight -- so consult an
attorney.
Most everything
else is "counted" when determining whether you meet the financial
criteria, There are further exceptions, however, so you should consult an
attorney and provide your attorney with complete information.
Note:
This information is maintained to benefit the elderly in
USE
AT YOUR OWN RISK. Please report changes, errors, and
suggestions to Lisa Davis.
* For the complete and official list, see the Uniform Policy Manual of the Department of Social Services, sections beginning with 4000. Or see most, but not all, exemptions, in PDF.