Understanding Assets and Resources for Medicaid Eligibility in New Jersey

The Chamberlain Law Firm


Navigating the complex world of Medicaid in New Jersey can be a daunting task. One of the key factors in determining Medicaid eligibility in New Jersey is an individual’s assets and resources. This article aims to clarify what is considered an asset or a resource for Medicaid in New Jersey, and how an experienced attorney can help you determine your eligibility.

As experienced New Jersey Medicaid attorneys, we are dedicated to helping clients understand the nuances of this essential program. Here, we’ll break down the basics of assets and resources, and how they impact Medicaid eligibility in the Garden State.

What is Medicaid?

Medicaid is a state and federally-funded health insurance program designed to provide healthcare coverage for low-income individuals, families, and seniors. Each state has its own set of rules and regulations, so it’s essential to understand the specifics of New Jersey’s Medicaid program when determining eligibility.

Assets and Resources: Defined

When discussing Medicaid, assets and resources are two terms frequently used interchangeably. However, it’s important to understand the distinction between the two. Assets are items of value that can be converted into cash, whereas resources are financial products that can be directly accessed. Assets and resources both factor into the Medicaid eligibility equation.

Countable Assets and Resources for Medicaid in New Jersey

When determining Medicaid eligibility in New Jersey, it’s crucial to know which assets and resources are considered “countable” and which are not. Countable assets and resources include:

  1. Checking and savings accounts
  2. Certificates of deposit (CDs)
  3. Stocks and bonds
  4. Mutual funds
  5. Retirement accounts (e.g., IRAs and 401(k)s) if the individual is not actively working
  6. Cash value of life insurance policies which exceed $1500 in face value
  7. Real property (excluding the primary residence)
  8. Personal property (e.g., vehicles, boats, or collectibles)
  9. Trusts, depending on the terms and conditions

Exempt Assets and Resources for Medicaid in New Jersey

Certain assets and resources are exempt or not counted when determining Medicaid eligibility. These include:

  1. The primary residence (up to a specified equity limit)
  2. One vehicle to the extent that its current market value does not exceed $4500
  3. One wedding and engagement ring
  4. Prepaid funeral arrangements
  5. Personal belongings (e.g., clothing, household items, and furniture)
  6. Specific life insurance policies with a face value below $1500
  7. Certain income-producing properties
  8. Some types of trusts, depending on the terms and conditions

How an Attorney Can Help

Given the complexities of Medicaid eligibility, it is vital to consult with an experienced New Jersey Medicaid attorney to ensure that your assets and resources are accurately assessed. An attorney can help you:

  1. Review your financial situation to determine your eligibility
  2. Identify potential planning strategies to protect assets and minimize spend-down
  3. Provide guidance on the use of trusts and other legal tools to preserve assets while maintaining Medicaid eligibility
  4. Assist with the application process, ensuring all documentation is accurate and complete.
  5. Represent you in the event of a Medicaid application denial or appeal


Understanding the various assets and resources considered for Medicaid eligibility in New Jersey is crucial for those seeking assistance through this vital healthcare program. Consulting with a knowledgeable New Jersey elder law attorney can help ensure that your assets are accurately assessed, and that you can access the Medicaid benefits you need. Contact our experienced New Jersey Medicaid attorneys today to discuss your specific situation and learn more about your options via our contact page or by calling us at (201) 249-6716.

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