Medicaid characterizes resources as either “exempt” or “countable.” Assets that Medicaid considers exempt are ignored when determining eligibility. These include a personal residence, one vehicle, prearranged funerals, burial plots, and personal items such as household goods, furniture, and clothing. All other assets you and your spouse own are subject to the spend-down rules. The key to protecting your life savings usually involves converting “countable” assets to “exempt” resources, but the approach requires careful planning, timing, and implementation.