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Question:

In Virginia is property owned in an S corporation and or LLC counted as an asset when applying for Medicaid?

Response:

While I don’t know about Virginia in particular, I don’t see why such property would not be counted as an asset. Property is property no matter how it is held.

Medicaid is our nation’s safety net health care program for those who cannot afford private health insurance. Unlike standard health insurance and Medicare, Medicaid also covers nursing home care and some home health and assisted living care. As a result, many seniors who have Medicare for the basic health care coverage also depend on Medicaid for their long-term care and must satisfy its strict asset limits — typically $2,000 in “countable” assets for the applicant and about $130,000 for his or her spouse, if any — in order to qualify. Assets may be sheltered through certain irrevocable trusts, but virtually all assets are counted except for the applicant or spouse’s home. Placing property in an S corporation (which is actually simply a tax classification) or an limited liability corporation (LLC) or partnership (LLP) normally should not protect it from being counted against the Medicaid asset limits. There might be an argument that such ownership would make the property “inaccessible,” but that would be far from a certain result.

However, to be absolutely certain, you would have to consult with a Virginia elder law attorney. You can find one at www.elderlawanswers.com.

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