Medicaid Planning Attorney in Corpus Christi

How Texas Medicaid Eligibility Rules Work

Texas Medicaid divides an applicant’s assets into two categories: countable and exempt. Countable assets include bank accounts, investments, and most property beyond the primary home. Exempt assets, including the homestead under certain conditions, a vehicle, and personal belongings, don’t count against the limit. As of 2026, a single applicant for nursing home Medicaid generally must hold countable assets below $2,000 and have gross monthly income under $2,982.

Two rules catch many families off guard:

• The five-year look-back period: Texas enforces a 60-month review of all asset transfers made before an application. Transfers below fair market value during that window can trigger a penalty period of ineligibility, delaying care coverage even when the applicant otherwise qualifies.
• The Qualified Income Trust (Miller Trust): Applicants whose gross monthly income exceeds the $2,982 cap aren’t automatically disqualified, but they must redirect excess income each month into a Qualified Income Trust, also called a Miller Trust, to preserve eligibility. Without one, income above the cap can make Medicaid unavailable regardless of asset levels.

The homestead is generally exempt up to a home equity limit of $752,000 for 2026, provided the applicant intends to return home. That exemption, however, doesn’t protect the home after death.

Protecting a Spouse’s Assets & the Family Home

When one spouse enters a nursing facility and the other remains at home, Texas’s spousal impoverishment rules provide meaningful protections. The at-home spouse, called the community spouse, can keep a Community Spouse Resource Allowance of between $32,532 and $162,660 in countable assets in 2026. The community spouse is also entitled to a Minimum Monthly Maintenance Needs Allowance of up to $4,066.50 per month, drawn from the applicant spouse’s income when the community spouse’s own income falls short.

The family home is a separate concern. Even though the homestead is exempt during a Medicaid recipient’s lifetime, it isn’t shielded from the Texas Medicaid Estate Recovery Program (MERP). After a recipient’s death, the state may seek reimbursement from the estate, and the home is often the largest available asset. Planning before or during the Medicaid application process can reduce that exposure, but the options depend heavily on timing and family circumstances.

What to Bring to Your First Medicaid Planning Meeting

The more complete your financial and legal picture at the first meeting, the more productive the conversation can be. Gathering this information beforehand lets us give you an accurate assessment of where you stand and what options are available.

Estate Planning Documents
Bring any existing wills, trusts, powers of attorney, and advance directives. These documents affect how assets are held and transferred, which matters directly to Medicaid eligibility analysis.

Financial Records
Bank and investment account statements, property deeds, vehicle titles, life insurance policies, and retirement account information. A complete asset picture is necessary to identify what’s countable, what’s exempt, and what transfers may already have occurred within the look-back window.