Where to start › When the money runs out
What happens when the money runs out?
This is the question that keeps people up at night, and almost no one explains it plainly. Here is the shape of it. These are the concepts — the exact dollar figures change every year and differ by state, so we point you to your state and to the people who give real advice on the money.
The big picture
When private savings run low, most people turn to Medicaid to pay for long-term care. Medicaid is for people with limited income and assets, so qualifying means showing you are under your state's limits — a process usually called "spending down." There are rules about how that can and can't be done, strong protections for a spouse who is still at home, and a set of questions about the house. None of it is intuitive, and small mistakes can be costly — which is why an elder-law attorney is genuinely worth it here for many families.
The pieces, one at a time
- Spending down to qualify — how people become eligible, and the income and asset limits (concept).
- The five-year look-back — why you can't simply give money away first.
- Protecting the spouse at home — the rules that keep a healthy spouse from being impoverished.
- What happens to the house — the home exemption and "estate recovery" after death.
States with detailed, dated figures
We're filling in each state's actual numbers — the real limits, what a spouse keeps, the waivers, and who to call. Live now:
Your state not here yet? The general pages above still prepare you, and every one ends with who to ask for your state's specifics.
One honest warning
You will find websites that promise to "hide assets" or guarantee eligibility. Be careful. The rules are real, the penalties for doing it wrong are real, and the legitimate strategies are the domain of a licensed elder-law attorney who knows your state. What we can do is make sure you understand the landscape well enough to ask good questions — and know who to ask.
Who helps you locally — free, and on your side. You do not have to figure this out alone. Your Area Agency on Aging gives free options counseling; reach any of them through the federal Eldercare Locator at 1-800-677-1116 or eldercare.acl.gov (Administration for Community Living). More on the four people who help — and what each one does — on Who helps me locally.