At Ivy & Owl Estate Planning, we understand the unique challenges Texas seniors face when planning for long-term care. Medicaid Estate Planning is a crucial tool to protect your life's savings, qualify for Medicaid benefits, and secure peace of mind for you and your family.

This guide will help you understand the essentials of Medicaid planning tailored specifically for Texas seniors.

Why Medicaid Estate Planning is Essential for Texans

Long-term care can quickly drain your savings, leaving little behind for your loved ones. Medicaid estate planning helps ensure you can access essential healthcare without exhausting your assets, preserving your legacy, and providing dignity in your senior years.

• Asset Protection: Shield your assets from the high costs associated with nursing homes or assisted living.
• Medicaid Eligibility: Navigate Texas-specific Medicaid eligibility rules effectively.
• Maintain Quality of Life: Ensure your assets continue to support your lifestyle and your family's future.

Essential Medicaid Planning Strategies for Texas Seniors‍

Effective Medicaid estate planning in Texas involves specialized strategies designed to meet state-specific rules and regulations.

Understanding Texas Medicaid Income & Asset Limits: 

• Income Limits: In 2025, Texas Medicaid's monthly income limit is $2,901 for an individual. Married couples have a combined income limit of $5,802 if both are applying.
• Asset Limits: Texas Medicaid allows $2,000 in countable assets for an individual applicant. If married, the community spouse (non-applicant spouse) can retain assets up to $157,920.

Qualified Income Trusts (Miller Trusts)

For Texas seniors whose income exceeds Medicaid's limits, a Qualified Income Trust (QIT), also known as a Miller Trust, allows them to become eligible by placing excess income into an irrevocable trust. Ivy & Owl Estate Planning helps seniors structure and manage these trusts to maintain compliance and eligibility.

Medicaid-Compliant Annuities:

• Medicaid-Compliant annuities convert your countable assets into an income stream exempt from Medicaid asset calculations. These annuities must meet specific criteria, including being irrevocable, actuarially sound, and providing equal monthly payments. Ivy & Owl can help ensure your annuity meets these strict guidelines.

Irrevocable Trusts:

• Irrevocable trusts protect your assets by removing them from your direct ownership, thus shielding them from Medicaid’s 5-year look-back period. Properly structured trusts can protect your home, investments, and other significant assets.

Navigating the Texas Medicaid Look-Back Period

Texas Medicaid employs a strict 5-year look-back period. Any assets transferred or gifted within five years of applying may incur penalties, delaying Medicaid eligibility. Planning early with guidance from Ivy & Owl Estate Planning helps avoid these costly mistakes.

• Document Transfers Clearly: Maintain thorough documentation of asset transfers.
• Strategize Early: Engage in Medicaid planning well in advance of your anticipated care needs.
• Leverage Allowable Transfers: Certain transfers, such as those to spouses or disabled children, may be exempt from penalties.

Protecting Your Family Home and Spousal Assets

Medicaid rules include protections for spouses, ensuring they are not impoverished by the costs of their partner’s care.

• Home Equity Protection: Texas Medicaid allows a home equity exemption up to $730,000 (2025).
• Spousal Protection: Utilize strategies to maximize the Community Spouse Resource Allowance (CSRA) of up to $157,920 to safeguard your spouse's financial stability.

Texas Medicaid Estate Recovery

The Medicaid Estate Recovery Program (MERP) in Texas seeks reimbursement for certain services after the Medicaid recipient passes away. Ivy & Owl Estate Planning can help structure your estate to minimize or entirely avoid this recovery, preserving your assets for your heirs.

Ivy & Owl Estate Planning: Your Partner in Medicaid Planning

At Ivy & Owl Estate Planning, we specialize in personalized, compassionate, and effective Medicaid planning for Texas seniors. Our experienced attorneys guide you through every step, protecting your financial future and ensuring the best possible care.

Contact us today at ivyowlestateplanning.com to discuss your unique needs and secure your peace of mind.