Elder Law and Medicaid Planning in Texas: Protecting Assets and Securing Care
- Texas Attorney Ryan Putz
- Sep 21
- 3 min read
When families in Texas begin to think about long-term care for aging loved ones, questions about Medicaid eligibility, nursing home costs, and protecting family assets inevitably arise. Elder law and Medicaid planning can feel overwhelming, but with the right guidance, Texas families can preserve wealth, ensure quality care, and avoid unnecessary financial hardship.
Why Medicaid Planning Matters
Long-term care is expensive. In Texas, nursing home costs can exceed $70,000 per year, and Medicare does not cover these expenses beyond short-term rehabilitation. Private pay can quickly drain savings, and many families turn to Medicaid—the joint federal and state program that provides health coverage for low-income individuals—to help cover nursing home care.
However, Medicaid has strict financial eligibility requirements. Without proper planning, families may find themselves forced to spend down assets or risk denial of benefits. Elder law attorneys help navigate this system to protect assets while securing necessary care.
Key Medicaid Rules in Texas
Medicaid rules are complex, but here are some essentials for Texas families:
Asset Limits: To qualify, an applicant generally cannot have more than $2,000 in countable assets. Certain assets—like a primary homestead, one vehicle, and personal belongings—may be exempt.
Income Limits: Texas has specific monthly income caps. If an applicant’s income is above the limit, a Qualified Income Trust (“Miller Trust”) may be required.
Look-Back Period: Medicaid reviews transfers of assets made within the last five years. Gifts or transfers for less than fair market value can result in a penalty period of ineligibility.
Spousal Protections: Medicaid rules protect the “community spouse” (the spouse not applying for care) by allowing them to retain a portion of the couple’s income and assets.
Understanding these rules is critical to avoiding costly mistakes.
Medicaid Planning Strategies
Elder law attorneys use a variety of strategies tailored to each family’s circumstances:
Asset Protection Trusts: Certain irrevocable trusts can protect assets if created well in advance of the need for care.
Spend-Down Planning: Converting countable assets into exempt assets (such as paying off a mortgage or making home improvements) can help meet Medicaid eligibility requirements.
Miller Trusts (Qualified Income Trusts): These allow applicants with excess income to qualify for Medicaid by directing income into a trust used for care costs.
Caregiver Agreements: Formal contracts that compensate family caregivers can help preserve family assets while providing needed support.
The Role of an Elder Law Attorney
Because Medicaid rules are state-specific and change frequently, professional guidance is essential. An elder law attorney in Texas can:
Analyze financial and family situations to determine eligibility.
Draft and implement trusts and caregiver agreements.
Guide families through the Medicaid application and appeals process.
Protect assets for spouses and heirs while securing long-term care coverage.
Planning Ahead vs. Crisis Planning
Ideally, Medicaid planning starts years before care is needed. Early planning offers more options and greater protection. But even in crisis—when a loved one suddenly needs nursing home care—there are still strategies to preserve assets and secure benefits.
The key is to act quickly and with experienced legal guidance.
Final Thoughts
Elder law and Medicaid planning in Texas is about more than just money—it’s about peace of mind. By preparing ahead, families can protect their hard-earned assets, ensure quality care for their loved ones, and avoid the financial strain that long-term care often brings.
If you or a loved one is facing questions about long-term care or Medicaid eligibility, consider consulting with a Texas elder law attorney and contact the Law Office of Ryan Putz today. The right plan can make all the difference.
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