This page provides a plain-English summary of key elder care and estate planning information specific to Illinois residents. It covers Illinois Medicaid limits, estate tax rules, advance directive information, and links to important Illinois agencies and resources.
Information on this page is updated periodically but laws and limits change frequently. Always verify current figures with the relevant agency or a licensed attorney.
Illinois Medicaid — 2026 Eligibility Limits for Long Term Care
Medicaid is the primary payer for nursing home care in Illinois. To qualify for Illinois Nursing Home Medicaid a person must meet income, asset, and functional eligibility requirements.
Income limit — single applicant The income limit for a single applicant is $1,330 per month as of April 2026. Illinois uses a medically needy spend-down pathway meaning that applicants whose income exceeds the limit may still qualify by applying excess income toward the cost of medical care.
Asset limit — single applicant A single applicant must have $17,500 or less in countable assets. Exempt assets — assets that do not count toward the limit — include the primary residence with equity up to $730,000 if the applicant intends to return home, one vehicle, personal belongings and household furnishings, and irrevocable prepaid funeral and burial contracts up to $8,434.
Married couples — one spouse applying When only one spouse applies for Medicaid nursing home benefits the applicant spouse may retain up to $17,500 in countable assets. The community spouse — the spouse who remains at home — may retain up to $143,172 in countable assets under the Community Spouse Resource Allowance. The community spouse’s income is generally not counted toward the applicant’s eligibility.
Monthly Maintenance Needs Allowance The community spouse is entitled to a minimum monthly income allowance of up to $4,066.50 per month effective January 1 2026. If the community spouse’s income falls below this amount the nursing home spouse may transfer income to bring the community spouse up to the allowance.
Personal needs allowance Once approved for Medicaid nursing home benefits Illinois residents are allowed to keep only $30 per month as a personal needs allowance. The remainder of their income is applied toward the cost of care.
Look-back period Illinois has a 60-month — five year — look-back period. When applying for Nursing Home Medicaid the state reviews the previous five years of financial transactions for asset transfers made for less than fair market value. Disqualifying transfers may result in a penalty period of ineligibility.
How to apply for Illinois Medicaid Applications can be submitted online through the ABE portal at abe.illinois.gov, by phone at 1-800-843-6154, or in person at a local Illinois Department of Human Services Family Community Resource Center.
Illinois Medicaid administering agency Illinois Department of Healthcare and Family Services — hfs.illinois.gov
Illinois Estate Tax — 2026
Illinois is one of a small number of states that imposes its own estate tax separate from the federal estate tax.
Illinois estate tax exemption The Illinois estate tax exemption is $4,000,000 per person. Estates with a total value above $4 million are subject to Illinois estate tax on the amount above the exemption.
Federal estate tax exemption The federal estate tax exemption is $15,000,000 per person in 2026 following enactment of the One Big Beautiful Bill Act. This means Illinois residents with estates between $4 million and $15 million may owe Illinois estate tax but no federal estate tax.
Illinois estate tax rate The Illinois estate tax rate is graduated with a top rate of 16 percent on amounts above the exemption.
Portability The Illinois estate tax exemption is not portable between spouses. Unlike the federal exemption a surviving spouse cannot use the deceased spouse’s unused Illinois exemption. Married couples with combined assets above $4 million should work with an estate planning attorney to ensure both spouses’ exemptions are utilized — typically through trust planning.
No inheritance tax Illinois does not have an inheritance tax. Beneficiaries who receive assets from an Illinois estate do not pay a separate inheritance tax.
No gift tax Illinois does not have a state gift tax though federal gift tax rules apply.
Filing the Illinois estate tax return The Illinois estate tax return — Form 700 — is administered by the Illinois Attorney General. The tax is due nine months after the date of death. For estates in Cook, DuPage, Lake, and McHenry Counties the return is filed at the Illinois Attorney General’s office in Chicago. For all other counties the return is filed at the Springfield office.
Illinois Advance Directives
Illinois law recognizes the following advance directive documents:
Illinois Healthcare Power of Attorney Allows you to name a healthcare agent to make medical decisions on your behalf if you become unable to do so. Illinois law requires the document to be signed and witnessed by one adult witness who is not your healthcare agent.
Illinois Living Will Documents your wishes regarding life-sustaining treatment when you have a terminal condition and cannot communicate. Must be signed and witnessed by two adults.
Illinois POLST — Practitioner Orders for Life-Sustaining Treatment A medical order form for people with serious illness or frailty that documents wishes regarding CPR, hospitalization, and other life-sustaining treatments. Must be signed by a physician, nurse practitioner, or physician assistant.
Free Illinois advance directive forms Free state-specific Illinois advance directive forms are available at caringinfo.org — the website of the National Hospice and Palliative Care Organization.
Illinois Advance Directive Registry Illinois does not currently maintain a statewide advance directive registry. Copies of your advance directive should be given to your healthcare agent, your physician, and any hospital or care facility where you receive care.
Illinois Key Agencies and Resources
Illinois Department of Healthcare and Family Services Administers Illinois Medicaid including long term care Medicaid. Website: hfs.illinois.gov Phone: 1-800-843-6154
Illinois Department on Aging Coordinates programs and services for older Illinois residents including the Community Care Program which provides in-home services as an alternative to nursing home placement. Website: aging.illinois.gov Phone: 1-800-252-8966
Illinois Area Agencies on Aging Illinois is served by 13 regional Area Agencies on Aging that coordinate local services for older adults and caregivers. Contact the Illinois Department on Aging or the Eldercare Locator to find the Area Agency on Aging serving your county. Eldercare Locator: 1-800-677-1116 or eldercare.acl.gov
Illinois Long Term Care Ombudsman Program Advocates for the rights of residents of nursing homes, assisted living facilities, and other long term care settings. Investigates complaints and helps resolve problems free of charge. Website: aging.illinois.gov/facing-issues/long-term-care-ombudsman Phone: 1-800-252-8966
Illinois Department of Human Services Determines Medicaid eligibility in Illinois and administers a range of other programs for older adults and people with disabilities. Website: dhs.state.il.us ABE Application Portal: abe.illinois.gov Phone: 1-800-843-6154
Illinois Attorney General — Estate Tax Administers the Illinois estate tax. The Illinois estate tax return — Form 700 — is filed with the Attorney General’s office. Website: illinoisattorneygeneral.gov Chicago office: 115 S. LaSalle St., Chicago, IL 60603 Springfield office: 500 South Second Street, Springfield, IL 62701
Illinois State Bar Association Provides a lawyer referral service to help Illinois residents find attorneys including those who specialize in elder law and estate planning. Website: isba.org Phone: 1-800-922-8757
Illinois Legal Aid Online Provides free legal information and resources for Illinois residents including plain-English guides to Medicaid, estate planning, and elder law topics. Website: illinoislegalaid.org
Illinois Veterans Resources
Illinois Department of Veterans’ Affairs Provides services and benefits to Illinois veterans and their families including assistance with VA claims, state veterans homes, and Illinois-specific veterans benefits. Website: veterans.illinois.gov Phone: 1-800-437-9824
Illinois State Veterans Homes Illinois operates veterans homes that provide long term care to eligible veterans and their spouses. Facilities are located in Anna, LaSalle, Manteno, and Quincy. Website: veterans.illinois.gov/benefits/homes.htm
Illinois Veterans Grants The Illinois Veterans Grant — IVG — provides full tuition waivers at Illinois public universities and community colleges to eligible Illinois veterans. Contact the Illinois Department of Veterans’ Affairs for details.
Illinois Senior Property Tax Benefits
Illinois offers several property tax relief programs for older adults:
Senior Citizens Homestead Exemption Reduces the equalized assessed value of a primary residence by up to $8,000 in Cook County and counties contiguous to Cook County or $5,000 in all other counties for homeowners aged 65 and older. Apply through your local County Assessor’s office.
Senior Citizens Assessment Freeze Homestead Exemption Freezes the assessed value of a primary residence for qualifying seniors aged 65 and older who meet income requirements. Prevents increases in assessed value from increasing property taxes.
Senior Citizens Real Estate Tax Deferral Program Allows qualifying seniors aged 65 and older who meet income requirements to defer payment of property taxes until the home is sold or transferred. Contact your local County Treasurer’s office for information.
Finding Elder Law and Estate Planning Attorneys in Illinois
The following resources can help you find a qualified elder law or estate planning attorney in Illinois:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory of elder law attorneys by location
- Illinois State Bar Association Lawyer Referral Service — isba.org — 1-800-922-8757
- Illinois Chapter of NAELA — Illinois has an active chapter of NAELA with members throughout the state
- Illinois Legal Aid Online — illinoislegalaid.org — free legal resources and attorney referrals for income-qualifying residents
The information on this page is for general informational purposes only and does not constitute legal or financial advice. Medicaid eligibility limits, estate tax rules, and other figures change frequently. Always verify current information with the relevant agency or a licensed attorney. Laws vary and individual circumstances differ significantly.
Last updated: March 2026