Asset Rules for Long-Term Care Medicaid
Long-Term Care Medicaid is for people with limited savings. To qualify, an applicant’s countable assets must be at or below the state’s limit, which is $2,000 for a single person in most states. Not everything you own counts. This section explains which assets count, which are exempt, and how common items like retirement accounts, life insurance, joint bank accounts and cars are treated.
Figures change periodically. Double-check current amounts before relying on them.
The short version
- Most states allow a single applicant to keep $2,000 in countable assets. Where the single limit is $2,000, a couple who both apply can usually keep $3,000. Some states use higher limits, including New York ($33,038), Illinois ($17,500) and California ($130,000) in 2026.
- Countable assets include cash, bank accounts, investments and most real estate other than the home.
- Exempt assets include, in most cases, the home, one vehicle, household goods and personal belongings, and certain burial funds and prepaid funeral plans.
- If the applicant is married, the spouse at home can keep a much larger share. See Married Couples.
- Giving assets away to get under the limit can cause a penalty. See Look-Back and Gifts.
Guides in this section
| Guide | What it covers |
|---|---|
| What counts as an asset? | Countable assets, how they are valued, and the date they are counted |
| Exempt (non-countable) assets | The home, a car, belongings, burial funds and other exempt items |
| Asset limits by state (2026 chart) | Every state’s 2026 single and couple limit |
| Retirement accounts | IRAs, 401(k)s and pensions, and the difference “payout status” can make |
| Life insurance | Term vs. whole life, cash value and the face-value exclusion |
| Joint bank accounts | How shared accounts are counted and the risks of adding a name |
| Cars and other vehicles | The one-vehicle exemption and what happens with a second car |
| Common financial mistakes to avoid | The errors that most often cost families money or delay coverage |
| Receiving an inheritance | What happens when an applicant or recipient inherits money or property |
| Owning a business | When business property is excluded and what happens if it closes |
| Owning rental property | When rental property counts, the 6% test and the options |
| Self-support property | Property used to earn a living, and the $6,000 and 6% rules |
| Health savings accounts | How an HSA is counted and how to use it in a spend-down |
| Why hiding assets does not work | Why concealment fails and the penalties it brings |
Getting help
Asset rules are where small mistakes become expensive. Spending money the wrong way, or failing to use an exemption, can cost thousands of dollars. Working with a Certified Medicaid Planner (CMP) before spending down is a sensible step for most families. Each state guide lists that state’s 2026 asset rules.
Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.