Protect Your Family from
Long-Term Care Costs
How to Protect Your Assets From Nursing Home Costs in Indiana
If you or a loved one eventually needs nursing home care in Indiana, Medicaid may help cover the cost—but only if you qualify. Indiana Medicaid has strict income and asset limits. Without careful planning, you could be forced to spend nearly everything before receiving benefits.
The good news: with smart Medicaid planning, you can protect your home, savings, and legacy while still qualifying for coverage.
Here’s what you need to know.
Medicaid Asset Limits in Indiana
To qualify for nursing home Medicaid in Indiana:
A single person must have no more than $2,000 in countable assets.
A married couple, where only one spouse is applying, can protect up to $157,920 for the non-applicant spouse.
If both spouses apply, they must have no more than $3,000 combined.
Some assets are countable, like cash and bank accounts. Others may be exempt, such as:
Your home (if a spouse, minor child, or disabled child lives there)
Personal belongings
One vehicle
Irrevocable burial funds
What Happens if You Exceed the Limit?
If your countable assets are too high, you have three main options:
Spend Down – Use excess funds on care or exempt items (like home repairs or a funeral plan).
Plan Strategically – Shift assets into exempt categories or use legal planning tools.
Transfer Assets – With extreme care. Medicaid enforces a 5-year lookback period. Transfers within that time may trigger penalties.
Can You Hide Assets From Medicaid?
No. Attempting to hide or underreport assets is Medicaid fraud—a felony that can result in serious penalties.
Instead, work with a knowledgeable Fort Wayne elder law attorney to structure legal, ethical asset protection strategies that comply with Indiana law.
How Does Medicaid Know What You Own?
When you apply, Indiana Medicaid will request full financial disclosure—checking accounts, retirement accounts, real estate, trusts, and more. They'll review 5 years of records and may require tax returns, bank statements, and transaction histories.
The state increasingly uses technology to uncover unreported assets. Full transparency is required.
Can Medicaid Take My Assets After I Die?
Yes, under the Medicaid Estate Recovery Program (MERP), Indiana can attempt to recover costs from your estate after your death if you received Medicaid benefits after age 55.
This may include:
Your home or farmland
Remaining bank or nursing home account balances
Certain life insurance policies
Assets in a revocable trust
However, recovery can be delayed or avoided if you have:
A surviving spouse
A child under 21 or a child who is blind or disabled
Proper planning done more than 5 years in advance
Assets placed in an irrevocable trust
What Is Medicaid Asset Protection?
Medicaid Asset Protection is a legal strategy to preserve your wealth while preparing for long-term care. Common tools include:
Irrevocable Trusts (such as a Medicaid Asset Protection Trust)
Exempt Asset Conversions (e.g., using cash to buy an exempt car)
Spousal Protections
Crisis Planning, even if Medicaid is needed soon
Done right, these strategies allow you to keep your home and savings in the family—without breaking Medicaid rules.
Do I Need a Medicaid Planning Lawyer?
Yes. Indiana’s Medicaid rules are complex, and small mistakes can cost you everything. An experienced Indiana elder law attorney can help you:
Understand what you can legally protect
Avoid penalties and denials
Navigate the application process
Minimize estate recovery
Whether you’re planning years in advance or need help today, it’s not too late to start.
Get Help Protecting Your Assets
Don’t wait until it’s too late. If you or a loved one may need nursing home care, schedule a Medicaid planning consultation now. With the right plan, you can get the care you need without losing everything you’ve worked for.
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