A single Medicaid applicant in Texas can keep $2,000 in countable assets, while a healthy spouse who isn't applying can generally keep up to $162,660. Many people are surprised because the common assumption is that Medicaid requires spending down to nothing before a loved one qualifies for coverage.
Texas Medicaid does set firm limits, but the rules are specific and predictable. These rules also treat single applicants very differently from married couples where one spouse remains at home. If you're battling through the complications of Medicaid, seeking legal assistance can give you peace of mind.
Clients from Houston and Bay City, Texas, facing these questions don't have to sort through them alone. Our knowledgeable attorney at The Law Office of Whitney L. Thompson works alongside you to build a clear plan that protects both your assets and the people you love. Reach out to us now to discuss your case.
What Counts as an Asset for Texas Medicaid?
Medicaid doesn't count everything an applicant owns. Only "countable" assets in Medicaid planning apply toward the limit, such as bank accounts, stocks, bonds, CDs, and most retirement accounts that can be easily converted to cash. A number of assets are exempt, meaning they don't count toward the limit at all, including:
Your primary home, up to a home equity limit of $752,000, as long as you intend to return home or a spouse, minor child, or disabled child lives there
One vehicle
Household furnishings and personal belongings
Prepaid burial arrangements and irrevocable funeral trusts
Medicaid-compliant annuities
Assets held in a properly structured special needs trust for a disabled family member
Owning a home and a car doesn't disqualify an applicant. It's the cash and liquid investments above the limit that count against eligibility.
How Much Can a Single Applicant Keep to Qualify for Medicaid in Texas?
That $2,000 figure applies only after exempt assets, such as the home and vehicle described above, are set aside. This means most single applicants are working with a fairly short list: cash, checking and savings accounts, and any investments that aren't tied up in an exempt category.
A separate income limit also applies, which is currently $2,982 per month for an individual. Income and assets are evaluated differently. Applicants who are over the income limit can often still qualify by using a Qualified Income Trust, sometimes called a "Miller Trust," to redirect excess income.
How Much Can My Spouse Keep If I Need Nursing Home Care?
That $162,660 figure comes from the Community Spouse Resource Allowance (CSRA), which protects the healthy spouse (called the "community spouse") from being left with nothing while the other spouse is in nursing home care. Without it, Texas would otherwise treat the couple's combined assets as belonging to the applicant alone.
In practice, the community spouse can generally keep half of the couple's combined countable assets, up to that $162,660 maximum. If half of the couple's assets falls below $32,532, the community spouse is allowed to keep the full $32,532, which is a protected floor regardless of how modest the couple's overall savings are.
The CSRA is calculated based on countable assets as of the date the applicant enters a nursing facility, so the timing of that "snapshot" can matter as much as the total amount saved.
What Planning Tools Can Help You Qualify?
Several planning tools commonly help families reduce countable assets or restructure them within Medicaid's rules:
Spending down strategically: Paying for exempt items or allowable expenses, rather than in ways that could jeopardize eligibility
Irrevocable trusts: Designed for Medicaid asset protection, which can shelter assets if set up well in advance
Medicaid-compliant annuities: Convert countable assets into an income stream for the community spouse
Personal service contracts: Allow a family member to be compensated for caregiving in a way that's Medicaid-compliant
Texas enforces a 60-month look-back period. This means any transfers made for less than fair value within five years of applying can trigger a penalty period of ineligibility. This is why early planning matters, ideally years before care is needed, not in the middle of a hospital stay.
Our law firm’s attorney can review your specific timeline and help you understand which strategies are still available, even if a transfer has already taken place.
Mistakes to Avoid
A few patterns come up again and again for families going through this process for the first time, such as:
Waiting until a crisis hits: Planning options shrink dramatically once care is needed immediately, and if a loved one can no longer manage their own. affairs, guardianship may become necessary on top of Medicaid planning
Gifting money to children: Can trigger a look-back penalty if the family isn't aware of the rules.
Assuming the family home is automatically fully protected: It isn't in every scenario, including after death, when Medicaid Estate Recovery may apply during probate.
Attempting a DIY spend-down: Can accidentally disqualify the applicant or waste resources that could have been protected.
Get Dependable Legal Assistance With Medicaid Planning
Figuring out how much money you can keep and still qualify for Medicaid in Texas isn't something you should have to sort out alone, especially while also caring for a loved one. From our offices in Houston and Bay City, Texas, we serve families in Houston, Bay City, and across Brazoria, Fort Bend, Harris, Matagorda, Montgomery, and Wharton counties. Our experienced legal team can help build Medicaid and long-term care plans that protect what you’ve worked for while making sure your loved one gets the care they need. Schedule a consultation now to discuss your family's specific situation.
