Medicaid Asset Limit: What Counts and What You Can Keep

The Medicaid asset limit for nursing home care is often only a few thousand dollars for a single person. That number scares families, but it is not the whole story. Many assets do not count, and a spouse at home can keep much more. Here is how the limit works before your parent applies.

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What Is the Medicaid Asset Limit?

The Medicaid asset limit is the most a person can have in countable assets and still qualify for Medicaid long-term care. In many states it is $2,000 for a single applicant. Some states set it higher. Nebraska, for example, allows $4,000, while Iowa uses $2,000.

The limit applies to countable assets only. Medicaid divides what your parent owns into two groups: assets that count toward the limit, and assets that are exempt. The home, one vehicle, and personal belongings are usually exempt. Bank accounts and investments usually count.

Medicaid also has a separate income test. Meeting the asset limit does not settle the income question, and the reverse is true too.

LifeCare Senior Advocates reviews both as part of Medicaid planning for long-term care, so families know where they stand before they apply.

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Assets That Count Toward the Limit

Countable assets are things your parent could turn into cash to pay for care. These are the ones Dave sees most often when families first call.

Bank accounts

Checking, savings, money market accounts, and CDs in your parent's name, including joint accounts in most cases.

Investments

Stocks, bonds, mutual funds, and brokerage accounts.

Retirement accounts

IRAs and 401(k)s often count. Some states treat them differently once they are paying out, so check your state's rules.

Other real estate

A second home, rental property, or land that is not the primary residence.

Life insurance cash value

The cash value of whole life policies can count once the total face value is above a small limit.

Extra vehicles

One vehicle is usually exempt. A second car, boat, or RV usually counts.

What Assets Are Exempt From Medicaid

Exempt assets do not count toward the limit. Rules differ by state, but these are generally exempt for nursing home Medicaid.

The home, when it is the primary residence, your parent intends to return, or a spouse or dependent relative lives there, and equity is under the state limit
One vehicle
Household goods and personal belongings
An irrevocable prepaid funeral or burial plan within state limits
Burial plots for the applicant and close family
Life insurance with a small total face value

Asset Limits for Married Couples

When one spouse needs nursing home care and the other stays at home, the rules change. Medicaid looks at both spouses' countable assets together, then lets the spouse at home keep a share. This share is called the Community Spouse Resource Allowance.

For 2026, the federal range is $32,532 to $162,660. Each state applies its own rules within that range. The spouse at home also keeps their own income, and may be able to receive part of the applicant's income if theirs is low.

Nebraska

A single applicant can have up to $4,000 in countable assets. The spouse at home keeps at least half of the couple's countable assets, within the 2026 federal range. Read more about Medicaid planning in Nebraska.

Iowa

A single applicant can have up to $2,000 in countable resources, and Iowa checks the amount as of the first moment of the first day of the month. Iowa also counts retirement accounts. Read more about Iowa Medicaid asset rules.

If Your Parent Is Over the Asset Limit

Being over the limit does not mean your parent can never qualify. It means the extra has to be handled in a way the state accepts. Giving it away is not one of them, because gifts fall under the five-year look-back period.

Spend down on allowed costs. Care bills, debts, home repairs, a vehicle, and funeral arrangements are common. Learn how a Medicaid spend down works before money is spent.
Use the spouse protections. For a married couple, the spouse at home can keep a share of the assets and income.
Convert countable assets. Some planning tools turn countable money into something Medicaid does not count, when they are set up correctly.
Time the application. Applying in the right month can avoid paying for care longer than needed.

Every family's mix of assets is different. Dave looks at what your parent owns, which assets count in your state, and which steps fit before anything is moved.

Medicaid Asset Limit Questions

What is the Medicaid asset limit for nursing home care?

In many states it is $2,000 in countable assets for a single applicant. Some states set it higher, such as $4,000 in Nebraska. The home, one vehicle, and personal belongings usually do not count.

What assets are exempt from Medicaid?

Generally the home, one vehicle, household goods, an irrevocable prepaid funeral plan, burial plots, and life insurance with a small face value. Exact rules depend on the state.

Does the house count toward the Medicaid asset limit?

Usually not. The home is exempt when it is the primary residence, your parent intends to return, or a spouse or dependent relative lives there, and the equity is under the state limit.

How much can a spouse keep when the other spouse goes on Medicaid?

For 2026, the spouse at home can keep a share of the couple's countable assets between $32,532 and $162,660, depending on the state's rules. They also keep their own income.

Can I give money away to meet the Medicaid asset limit?

No. Gifts made within five years of applying can cause a penalty period with no coverage. Talk with Dave before moving any money.

Why Trust LifeCare Senior Advocates

Dave Brandt
Senior advocate and founder, LifeCare Senior Advocates

Dave Brandt brings more than 25 years in long-term care and works with families in all 50 states. He plans with each state's own Medicaid rules and reviews every asset before a family applies.

This page is general information, not legal advice. Medicaid rules and limits change and differ by state. Dave Brandt is a licensed insurance agent. LifeCare Senior Advocates is not a law firm and does not provide legal or investment advice.