MassHealth has strict financial limits, but not every asset counts toward eligibility. Some personal property, a primary residence within equity limits, certain vehicles, life insurance with low cash value, and approved burial funds can remain protected. Countable assets include savings, investments, and real estate that is not your home. Understanding how these rules apply to individuals and married couples helps you plan ahead and avoid unexpected eligibility problems.
What MassHealth Considers Exempt vs. Countable Assets
MassHealth divides your property into two categories:
- Exempt assets do not affect eligibility.
- Countable assets must fall below the program’s limits to qualify.
Common exempt assets include
- A primary residence with equity at or below MassHealth limits (currently about $1.13 million)
- One vehicle
- Personal belongings and household goods
- Burial funds (up to $1,500 if revocable; fully exempt if irrevocable)
- Certain life insurance policies with low cash value
Common countable assets include
- Cash, checking, and savings accounts
- Retirement accounts, such as IRAs and 401(k)s
- Stocks, bonds, and other investments
- Real estate other than your primary home
- Life insurance with significant cash value
We help you understand what falls into each category so you can plan for long-term care without unintended penalties.
What You Can Keep: Personal Property and Household Items
MassHealth does not count everyday property that you use in daily life. You can keep clothing, furniture, appliances, jewelry within reason, and other basic household items. These belongings do not need to be sold or transferred. Personal effects that have sentimental value but little resale value are also exempt.
However, collectible items or valuable antiques may raise questions because their market value can be high. If you have items that fall into a gray area, we will help you review how MassHealth typically evaluates them.
How Your Home Is Treated Under MassHealth Rules
Your primary residence is exempt under certain circumstances.
For long-term care applicants, MassHealth limits home equity to a specific amount that is adjusted periodically. As long as the equity falls under that limit and you intend to return home, the property is usually protected.
A home can also remain exempt if a spouse, a minor child, or a child with a disability lives there. When a spouse remains in the home, MassHealth cannot force a sale. That rule offers stability for families during a difficult transition into long-term care.
If the home does not qualify as exempt, it can become a countable asset. Planning before a health event occurs is the best way to protect it.
Vehicle Rules and Why One Car Is Exempt
MassHealth allows you to keep one vehicle. This includes a car, truck, or motorcycle that you or your spouse uses for transportation. If you own additional vehicles, those may be counted unless they are used for specific medical or disability-related purposes.
When a household owns more than one vehicle, we look at whether the second vehicle can be exempted through documentation or converted to a noncountable asset before applying.
Life Insurance and Burial Fund Exemptions
Life insurance rules depend on the policy’s cash surrender value.
- If the policy’s total face value is low, MassHealth generally treats it as exempt.
- If the cash value exceeds the limit, it may become a countable asset unless it is moved into an acceptable structure.
Burial funds receive special treatment. You may set aside money for funeral and burial expenses in an irrevocable burial account. MassHealth exempts these accounts because they cannot be accessed for other purposes. Burial plots and markers are also exempt.
MassHealth Asset Limits for Individuals vs. Married Couples
Eligibility rules differ depending on marital status.
Individual applicants
An individual entering a long-term care facility must keep countable assets under a very low limit. Most income must also be contributed toward the cost of care, aside from a small monthly allowance.
Married couples
When one spouse applies for MassHealth and the other remains at home, the “community spouse” is allowed to keep a larger portion of the couple’s assets. This is known as the Community Spouse Resource Allowance. The goal is to prevent the spouse at home from becoming financially unstable.
The couple’s combined assets are reviewed, then divided according to MassHealth formulas. With the right planning, many households are able to protect far more than they expected.
Why Early Planning Helps Protect More of Your Property
The earlier you review your assets, the more options you have. Certain transfers can trigger penalties if they occur too close to the date of application. Working ahead helps you use exemptions correctly, adjust your holdings when necessary, and avoid unintended violations of MassHealth rules.
We work with families to evaluate property, prepare documentation, and build a strategy that supports both eligibility and long-term financial stability.
Start Protecting Your Assets Today
If you want support with MassHealth planning, Surprenant, Beneski & Nunes, P.C. will help you understand what you can keep, how asset rules apply, and what steps you can take to strengthen your eligibility. Contact our team to begin planning with confidence.
