Medicaid Planning

Texas Medicaid Planning: Protecting Assets From Long-Term Care Costs

Published on: May 27, 2026 | By McCulloch & Miller, PLLC

Texas Medicaid planning is the process of legally structuring your income and assets so you can qualify for long-term care coverage without spending down everything you have saved. Nursing home care in Texas can cost thousands of dollars a month, and Medicaid is the primary program that helps families pay for it. With advance planning, many families are able to preserve significant assets while still meeting Medicaid’s strict financial limits.

McCulloch & Miller, PLLC helps families across Houston, Harris County, and the greater Houston metro area with Texas Medicaid crisis planning. Founding partner Thomas McCulloch is a member of the National Academy of Elder Law Attorneys, and his commitment to elder law grew from his own experience caring for his aging mother — perspective that shapes how the firm approaches these deeply personal decisions.

What Are the Medicaid Asset Limits in Texas?

To qualify for long-term care Medicaid in Texas, a single applicant generally must have no more than $2,000 in countable assets (as of 2026). Not everything counts, though: a primary home within the equity limit, one vehicle, personal belongings, and certain other resources are typically exempt. Because these figures are adjusted periodically, families should confirm the current limits with Texas Health and Human Services before relying on them.

How Medicaid Estate Recovery Affects Your Assets and How to Plan Ahead

Published on: March 24, 2025 | By Thomas W. McCulloch

Medicaid estate recovery is a scary process, and it can affect families across the country during already difficult times. How can you plan ahead and help guard against Medicaid estate recovery? This blog serves as a starting point, but remember that each person’s circumstances are different, and each person might benefit from a slightly different strategy when thinking through their own opportunities moving forward.

What is Medicaid Estate Recovery?

Medicaid estate recovery is the process through which the government seizes a decedent’s assets after he or she passes away. Typically, the government will initiate this process when the decedent benefited from Medicaid and when that person’s estate has assets that the government can use to recoup the money spent on his or her healthcare.

The government can legally seek reimbursement for any costs that the decedent used for a nursing home or long-term care facility, home services, prescriptions, and/or hospital services. The government is only allowed to seize the decedent’s assets that are part of their probate estate – so if you have an asset that is set up to bypass probate entirely, it will not be subject to the recovery process. Assets that are part of probate and would be subject to recovery can include (but are not limited to) a home, cash, and personal belongings.

What is Medicaid Crisis Planning?

Published on: July 30, 2024 | By David W. Miller

As we age, we need more health services to maintain our quality of life. Unfortunately, in this day and age, necessary services can cost a fortune. At McCulloch & Miller, one of our specialties is Medicaid crisis planning, which helps clients prepare for possible health needs in the future. If you have not yet begun your Medicaid crisis planning process, contact a Houston elder law attorney that can help you get started.

What Services Might I Need?

Government estimates indicate that up to 70 percent of older individuals require long-term care at some point. As you age, you might need to move into a facility such as a nursing home or residential center. If you decide to stay in your home, you might need a fulltime or parttime nurse to come check on you or to offer more substantive care. You might also opt for home therapy, wound care, fall prevention services, or other specialized services.

What Does Medicaid Crisis Planning Achieve?

Medicaid crisis planning helps you predict whether might qualify for Medicaid, which covers significant amounts of long-term care. To qualify, you must be characterized as “low income” or “very low income.” Of note, the government looks not only at applicants’ current financial status but also at their previous five years, so if you have only recently qualified as “low income,” you still might not qualify under the rules. To learn more about specific qualifications, click here for a chart of Texas Medicaid Facts for 2024.

When Should You Start Preparing to Apply for Medicaid in Texas?

Published on: April 7, 2024 | By David W. Miller

In Texas, the state provides Medicaid to those considered “low income” that meet certain threshold requirements. To qualify, you must be a low-income resident of Texas in need of heath care, and you must either be: pregnant, responsible for the care of a child, blind, disabled or caring for a person who is disabled, or 65 years or older. If you meet the requirements, you can submit your application, wait for the government to approve it, and eventually receive the state-sponsored benefit.

If you know that you will likely qualify for Medicaid at the age of 65, you can start to prepare for the process of submitting your application. This process will include filing out an online (or phone) form in which you answer questions about your household, your current income, and your assets. The government will be looking at your financial profile to ensure that you meet its requirements to receive Medicaid before it approves your application.

You might need several documents to supplement your application: these documents may include proof of your identity, a social security card, proof of citizenship, and documents proving where you live (many times, these documents end up overlapping with each other). You might also have expenses such as child support or loan payments that you will need to address. You should also be prepared to submit documents regarding your earnings, assets, medical expenses, housing expenses, and any current health insurance plan that you are using.

What is Medicaid Crisis Planning?

Published on: March 5, 2024 | By David W. Miller

It’s a universal truth that we all get older, and it’s also a universal truth that we can’t be sure what the future holds. For many individuals, aging means finding long-term care. Unfortunately, the cost of elderly care is incredibly expensive in this country, and it is difficult for many clients to piece together enough funds to cover their expenses. In order to avoid this crisis, we recommend that you begin your Medicaid crisis planning as soon as possible, which can help you avoid the need to panic down the road.

Medicaid crisis planning is the process of preparing today for your possible needs down the line. In the future, you might need a fulltime nurse, a nursing home, or other specialized care. By starting to plan now for how you might pay for these services, you can save yourself significant stress in the future.

Medicaid and Public Benefits

In Texas, you can apply for Medicaid, which will cover large portions of the cost of long-term care. Importantly, when deciding if an individual qualifies for Medicaid, the government will look at the past five years of the person’s financial history. Thus, if you have been financially stable but you’ve recently hit a tough spot, or if you are hoping to transfer assets to a loved one in hopes of qualifying for Medicaid, there is still a substantial likelihood that you will not meet the requirements.

Senior Public Benefits Planning in Texas

Published on: February 29, 2024 | By David W. Miller

As healthcare improves over time, the median age of adults in the U.S. also rises. While this is certainly a net positive for adults and their families, it also means that individuals have more planning to do regarding their elder years. Today, our blog reviews some important topics regarding senior public benefits planning in Texas that you might want to think through as you and your loved ones prepare for the future. As always, there is more to discuss than included in this post, and we recommend you reach out to a trusted estate planning attorney to learn more.

Medicaid Eligibility

Medicaid is a state-provided benefit that provides healthcare for individuals with limited resources. If you qualify for Medicaid, the State calculates a co-pay for you, which you then pay through Social Security or other sources of income. Then, when you go to a doctor’s office, the government pays the difference between your co-pay and the rate that the medical facility charges.

There are two main criteria you must meet to qualify for Medicaid: you must be both medically eligible and financially eligible. To be medically eligible, a doctor must sign off, confirming that you need a certain level of care. To be financially eligible, your assets and income cannot be higher than the government’s designated limit.

The Importance of a Houston Medicaid Planning Attorney

Published on: June 22, 2023 | By David W. Miller

By definition, Medicaid is a government benefit that is available to individuals with lower incomes that need to pay for long-term care. It was created in 1965 and provides coverage to millions of Americans, including pregnant women and older people who need health insurance. Despite its widespread availability, it can sometimes be difficult to access Medicaid, and Houston Medicaid planning attorneys can be incredibly helpful in making sure you receive the benefits you need when times are tough.

When You Might Consider Hiring a Medicaid Planning Attorney

If you or a loved one is considering long-term care, you might want to contact an attorney that can help you think through what benefits are available to you. Additionally, if you are currently undergoing a financial change in circumstances, it could be in your best interest to talk to an attorney to see if you qualify for Medicaid.

Working through a serious illness or planning for retirement might also be reasons to talk to a Medicaid attorney. This can be especially helpful when you feel as if your medical issues require enough attention that it is difficult to focus on taking the time to apply for Medicaid benefits on top of everything else you have going on.

The Difference Between Medicare and Medicaid

Published on: August 31, 2022 | By David W. Miller

Medicare and Medicaid have similar names but are two completely separate government health insurance programs. Understanding the difference can help you and your family plan for aging and retirement.

What is Medicare?

Medicare is a program administered by the federal government—the Centers for Medicare & Medicaid services—that is essentially available to anyone, regardless of income. If you are over 65 years of age or are younger and have a specific disability, you may qualify for Medicare. People covered under Medicare pay into a trust from which medical bills are paid. Most long-term care costs are not covered under Medicare, making it difficult for aging individuals and their families to pay for care facilities or long-term rehabilitation.

What is Medicaid?

Unlike Medicare, Medicaid is administered by individual states, such as Texas. It is catered to serve low-income people at any age, and also covers the costs of long-term care in nursing home facilities. In Texas, Medicaid is extremely complex and can be difficult to navigate. Medicaid applicants must either have a disability, be caring for a disabled child, or have a monthly income under a limit set by the government each year. Medicaid applicants must also have less than $2,000 in certain assets, which can exclude primary residences, vehicles, and some personal property. The government will look at the most recent five years of financial statements to ensure an applicant’s eligibility, making it difficult for applicants to transfer assets in anticipation of filing for Medicaid benefits if they wait until the last minute.

Why Is it Essential to Plan Ahead for Texas Elder Care?

Published on: April 29, 2021 | By McCulloch & Miller, PLLC

Thinking about long-term care—especially as a person ages—can be an overwhelming and scary process. However, as time goes on, it can be more difficult for seniors to obtain proper long-term care. This is why planning ahead is essential. Elder law attorneys will discuss financing for long-term care, which includes often applying for Medicare and Texas Medicaid. Although these are difficult conversations to have, starting the process as soon as possible can ensure a smooth transition when the time does come for new housing or medical care.

Plan Now, Avoid Care Issues Later

The Massachusetts Attorney General recently announced a settlement with a nursing home to resolve allegations that they failed to meet the needs of their residents. The Attorney General’s investigation found that within the time span of a year, the nursing home admitted residents that they did not have trained staff members to properly care for them or the necessary equipment. This also included the staff failing to properly prevent the development of ulcers on residents. The case is an example of a nursing home failing to properly care for its residents.

Resource and Income Limits for Houston Medicaid Applicants

Published on: August 25, 2020 | By McCulloch & Miller, PLLC

As we have discussed in other posts, planning for the eventual need for long-term care is a crucial element of any Houston estate plan. With the costs of nursing home care rapidly increasing across the country, more families are taking a proactive approach when it comes to deciding how to pay for these future costs.

For families with significant assets, the concern is not necessarily whether they can pay for the necessary care, but how they can limit the amount their own assets will go towards paying for the care. Thus, Medicaid planning is focused on how to strategically structure familial assets in a way that will enable the family member in need of long-term care to quickly and easily qualify for Medicaid while preserving their assets.

Medicaid is a needs-based program, and applicants must meet strict asset and income limits to qualify for benefits. One of the most important elements of Houston Medicaid planning is understanding these asset and income limitations. Applicants with excess assets or income will be required to “spend down” the excess before they can qualify for benefits. Of course, this can leave a spouse who is not in need of care in a challenging spot, because the money they need to continue to live independently may be diverted to pay for long-term care.