How Much Money Can I Keep if I Go Into a Care Home?

How much money you’re able to keep if you go into a care home depends on how your care is being paid. If you self-fund your care and are paying the full costs on your own, whether from private savings or income, there are no limits as to how much of your money you may keep. However, if, like many seniors, you rely on government financial assistance to help you afford long-term senior care, you will be subject to strict requirements related to your income and assets.

The limits imposed upon your existing income and assets vary according to the program for which you qualify. You can browse a wide variety of topics and resources related to health care and caregiving and learn more about managing your money effectively.

If you apply for Medicaid to help pay for a nursing home, assisted living, memory care or any other type of eligible long-term residential care, you can only have a certain amount in assets to be eligible for these benefits. Countable assets for the purpose of Medicaid include cash savings, stocks, bonds, shares and high home equity. Asset limits vary between states.

Whether you are single or married and, for married seniors, whether you are applying alone or with your spouse, can also affect how much money you can keep if you go into a care home. As a guideline, many states permit single seniors to keep between $2,000 and $4,000 in assets, but you should check with your state Medicaid program for the exact figure.

Medicaid may help cover care for low-income seniors. As a result, if you are eligible for Medicaid, you won’t have a high monthly income. Rules vary between states, but in most states Medicaid beneficiaries are permitted to keep a relatively small allowance each month. Generally, allowances are much smaller for nursing home residents, where Medicaid covers all costs of care plus bed and board.

Seniors who qualify for Medicaid waivers to help pay for assisted living or memory care must usually find another way to pay for bed and board. Their personal income allowances are, therefore, usually higher each month. You should check with your state Medicaid program, as rules and amounts vary across the nation.