"EXEMPT" ASSETS

1. Your HOME (1-family, 2-family, whatever) -- any value -- as long as any one of the following is 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)

· NOTE: you can GIVE to a sibling with an equity interest who has lived in house 1+ year preceding institutionalization. The rule used to be that the house was exempt if the sibling lived in it -- no more.

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.

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 in CT 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 for each of you and spouse. May be more than $5,400! If the funeral home issues both, they need to specify which covers which.

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 Connecticut Partnership Long-Term Care Insurance policy has paid out for your care.

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. EXTRA PROTECTION IS AVAILABLE FOR MARRIED COUPLES
WHEN ONLY ONE IS RECEIVING LONG-TERM CARE.

Note: This information is maintained to benefit the elderly in Connecticut and nationwide by providing a resource to attorneys, caregivers, and others assisting the elderly. However, accuracy and currency are not guaranteed. The law changes often; this may be out of date.

USE AT YOUR OWN RISK. Please report changes, errors, and suggestions to Lisa Davis.