Medicaid Exempt vs Countable Assets in Wisconsin: What Counts and What Doesn't
Medicaid Exempt vs Countable Assets in Wisconsin: What Counts and What Doesn't
The difference between qualifying for Wisconsin Medicaid and being denied often comes down to whether a specific asset is countable or exempt. Your parent may have more exempt assets than you realize — or they may have assets you assumed were protected that actually count.
Wisconsin applies its own rules on top of federal guidelines, and some of those rules catch families off guard.
Countable Assets (Must Be at or Below $2,000)
These are the assets Wisconsin counts toward the $2,000 individual limit (or $3,000 for a married couple where both apply):
| Asset | Details |
|---|---|
| Checking and savings accounts | All accounts in your parent's name or jointly held |
| Certificates of deposit | Full value, regardless of maturity date |
| Stocks, bonds, mutual funds | Current market value |
| IRAs and 401(k)s | Full value — Wisconsin counts these regardless of payout status |
| Annuities | Countable unless irrevocable, actuarially sound, and naming the state as remainder beneficiary |
| Life insurance cash surrender value | Countable if total face value of all policies exceeds $1,500 |
| Non-homestead real estate | Vacation homes, rental property, vacant land |
| Second vehicles | Only one vehicle is exempt |
| Savings bonds | Current redemption value |
The Retirement Account Problem
This is where Wisconsin differs from some other states and where families make the most expensive mistakes.
Wisconsin counts IRAs and 401(k)s as available assets. Some states exempt retirement accounts that are in required minimum distribution (RMD) status, counting only the monthly distribution as income. Wisconsin does not. A $75,000 IRA is $75,000 in countable assets, period.
This means retirement accounts must be spent down to the threshold just like any other countable asset. The spend-down strategies matter here: withdrawing from an IRA to pay for home repairs, prepaid burial, or legitimate debts converts countable assets into exempt items — but the withdrawal itself is also taxable income.
For married couples, the community spouse's retirement accounts are included in the combined asset total at the snapshot date. The CSRA calculation protects a portion, but the accounts themselves are not individually exempt.
Exempt Assets (Don't Count Toward the Limit)
| Asset | Conditions |
|---|---|
| Primary home | Equity up to $752,000 (2026), with documented intent to return |
| One vehicle | Any value — must be used for transportation |
| Household furnishings | Normal personal property and household goods |
| Personal effects | Clothing, jewelry of moderate value |
| Prepaid burial spaces | Plots, caskets, markers, vaults — no dollar limit |
| Irrevocable burial trust | Up to $4,500 |
| Term life insurance | No cash surrender value, so nothing to count |
| Whole life insurance | Exempt only if total face value of all policies is $1,500 or less |
| Wedding and engagement rings | Exempt regardless of value |
| Property essential for self-support | Tools of a trade, equipment for a business |
Free Download
Get the Wisconsin — Medicaid Long-Term Care Eligibility Checklist
Everything in this article as a printable checklist — plus action plans and reference guides you can start using today.
Gray Areas and Common Questions
What about the home if my parent is in a nursing home? The home remains exempt as long as your parent documents an intent to return. If the home is sold while your parent is on Medicaid, the proceeds become countable assets immediately.
What about property in a trust? Assets in a revocable trust are countable — your parent retains control. Assets in an irrevocable trust created more than 60 months ago are generally not countable. Assets in an irrevocable trust created within 60 months trigger a divestment penalty.
What about a car worth $50,000? One vehicle is exempt regardless of value. If your parent has two vehicles, the one of lower value is countable.
What about money owed to my parent? Promissory notes, loans receivable, and accounts receivable are countable at their current fair market value.
What about a jointly held bank account? Wisconsin presumes that the Medicaid applicant owns the entire balance unless you can prove otherwise with documentation showing the other party's contributions.
The Spousal Protection Layer
For married couples, the CSRA protects between $50,000 and $162,660 of combined countable assets for the community spouse. But the CSRA is calculated from the combined total of all countable assets — including both spouses' retirement accounts, all bank accounts, and all investments.
The CSRA doesn't change whether an asset is countable or exempt. It changes how much of the total countable assets the community spouse gets to keep.
What to Do
Create a complete inventory of every asset your parent owns. Classify each as countable or exempt using the tables above. Total the countable assets. If they exceed $2,000 (individual) or the applicable CSRA (married), you need a spend-down plan.
The Wisconsin Medicaid Long-Term Care & Asset Protection Guide includes a detailed asset inventory worksheet with every category, the exempt/countable classification for each, and the spend-down strategies to convert excess countable assets into exempt items before the Medicaid application.
Get Your Free Wisconsin — Medicaid Long-Term Care Eligibility Checklist
Download the Wisconsin — Medicaid Long-Term Care Eligibility Checklist — a printable guide with checklists, scripts, and action plans you can start using today.