What happens to a couple's savings when one spouse needs Medicaid in Texas?
Medicaid counts both spouses' countable assets together, then lets the spouse at home keep a community spouse resource allowance; in 2026 the federal range is $32,532 to $162,660, and the spouse needing care must be at or below $2,000.
| 2026 spousal impoverishment standard (federal) | Amount |
|---|---|
| Community spouse resource allowance, minimum | $32,532 |
| Community spouse resource allowance, maximum | $162,660 |
| Monthly maintenance needs allowance, minimum | $2,705.00 (effective July 1, 2026) |
| Monthly maintenance needs allowance, maximum | $4,066.50 |
Source: CMS Informational Bulletin, Updated 2026 SSI and Spousal Impoverishment Standards (April 27, 2026).
The snapshot date matters: assets are generally measured as of the first continuous period of institutional care. An elder law attorney can explain how Texas calculates the allowance for your situation and which assets are excluded.
Can the spouse at home keep some of the other spouse's income?
Yes. If the spouse at home has little income, part of the institutionalized spouse's income can be diverted to bring the at-home spouse up to the monthly maintenance needs allowance, which in 2026 runs from $2,705 to a federal maximum of $4,066.50.
Housing costs above a set standard can raise the allowance. The diversion is subtracted before applied income is calculated, so it reduces what goes to the nursing home rather than what Medicaid pays.
Is the family home safe if one spouse enters a nursing home?
The home is generally excluded while the spouse at home lives there, and it is not counted against the $2,000 limit for the spouse in care, though Texas's estate recovery program may later make a claim in some circumstances.
Estate recovery is deferred while a surviving spouse is living. Transferring the home to a child or anyone else can create a penalty unless an exception applies, so get advice before changing a deed.
When should a Valley couple see an elder law attorney?
Before moving money, before signing a facility admission agreement as a financially responsible party, and before applying for Medicaid if the couple owns more than the home, a car and a modest account.
The State Bar of Texas lawyer referral service and the legal assistance program at the Area Agency on Aging of the Lower Rio Grande Valley ((956) 682-3481, for people 60 and older) are places to start. Bring recent statements for every account, policy and deed.
Side by side
| Spousal protections do | Spousal protections do not | |
|---|---|---|
| Assets | Let the spouse at home keep a resource allowance | Shelter unlimited savings |
| Income | Allow income to be diverted to the spouse at home | Raise the care spouse's $75 allowance |
| Home | Exclude the home while the spouse lives there | Excuse transfers made in the look-back |
| Advice | Follow published federal and state standards | Replace a Texas elder law attorney |
Sources: Texas Health and Safety Code ch. 247 and 242; 26 TAC chapters 553, 554, 558 and 559; HHSC directories, TULIP and handbooks; CMS; CareScout; VA rate tables, as cited above. See our editorial standards.
