This page provides a plain-English summary of key elder care and estate planning information specific to Michigan residents. It covers Michigan Medicaid limits, estate tax rules, advance directive information, and links to important Michigan 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.
Michigan Medicaid — 2026 Eligibility Limits for Long Term Care
Michigan Medicaid — called Medical Assistance or MA — is administered by the Michigan Department of Health and Human Services and is the primary payer for nursing home care for eligible low income Michigan residents. Michigan expanded Medicaid under the Affordable Care Act in 2014 through the Healthy Michigan Plan covering a broader range of residents.
Important — Michigan raised its asset limit in 2025 Michigan significantly increased its Medicaid asset limit for long term care programs in 2025 raising it from $2,000 to $9,950 for a single individual. This increase brought Michigan’s limit in line with the Supplemental Security Income asset limit and made Medicaid more accessible to more Michigan residents. The $9,950 limit updates annually with cost of living adjustments.
Income limit — single applicant The income limit for a single nursing home Medicaid applicant is $2,982 per month in 2026. Michigan uses a spend-down process for applicants whose income exceeds the limit allowing them to apply excess income toward nursing home costs to qualify.
Asset limit — single applicant A single applicant must have $9,950 or less in countable assets in 2026. This is significantly more generous than the $2,000 limit in most other states. Exempt assets include the primary residence with equity up to $752,000 if the applicant intends to return home, one vehicle, personal belongings and household furnishings, and irrevocable funeral trusts. Note that IRAs are counted as countable assets in Michigan — unlike some other states.
Home and community based care — MI Choice Waiver Michigan’s MI Choice Waiver program provides home and community based services for people who need nursing home level care but want to remain at home. The asset limit is $9,950 for a single applicant and the income limit is $2,982 per month. Michigan also offers PACE and the Home Help program for eligible residents.
Married couples — one spouse applying When only one spouse applies for Medicaid the community spouse — the spouse who remains at home — may retain 50 percent of the couple’s combined countable assets up to a maximum of $162,660. If 50 percent of the couple’s assets is less than $32,532 the community spouse may retain up to $32,532. The applicant spouse retains $9,950.
Monthly Maintenance Needs Allowance The community spouse is entitled to a minimum monthly income allowance of between $2,643.75 and $4,066.50 per month in 2026 depending on housing costs. If the community spouse’s income falls below the minimum the nursing home spouse may transfer income to bring the community spouse up to the allowance.
Personal needs allowance Michigan nursing home Medicaid recipients are allowed to keep $60 per month as a personal needs allowance. The remainder of income is applied toward the cost of care.
Look-back period and divestment penalty Michigan has a 60-month — five year — look-back period for nursing home Medicaid and HCBS Waivers. Asset transfers made within 60 months of applying that were for less than fair market value may result in a penalty period of ineligibility. The 2026 divestment penalty divisor in Michigan is $12,216.30 per month — meaning the penalty period is calculated by dividing the disqualifying transfer amount by $12,216.30.
Estate recovery Michigan requires Medicaid estate recovery. After a Medicaid recipient dies the state seeks reimbursement from the estate for long term care costs paid. Planning with an elder law attorney can help protect assets from estate recovery.
How to apply for Michigan Medicaid Applications can be submitted online through MI Bridges at mibridges.michigan.gov, by phone at 1-888-642-4845, or in person at your local Michigan Department of Health and Human Services county office.
Michigan Medicaid administering agency Michigan Department of Health and Human Services — michigan.gov/mdhhs
Michigan Estate Tax — 2026
No Michigan state estate tax Michigan does not impose a state estate tax or a state inheritance tax. Michigan repealed its inheritance tax effective October 1 1993 and its estate tax is effectively zero because it was tied to the federal state death tax credit which was eliminated by federal law in 2005.
Federal estate tax Michigan residents may be subject to the federal estate tax. The federal estate tax exemption is $15,000,000 per person in 2026 following enactment of the One Big Beautiful Bill Act. The exemption is portable between spouses meaning a married couple can protect up to $30,000,000 from federal estate tax with proper planning. The top federal estate tax rate is 40 percent on amounts above the exemption.
No Michigan gift tax Michigan does not impose a state gift tax. Federal gift tax rules apply — the annual gift tax exclusion is $19,000 per recipient in 2026.
Michigan property tax — uncapping after inheritance One important Michigan-specific consideration involves property taxes. Michigan’s Proposal A limits annual increases in the taxable value of property while owned by the same person. However when real estate is transferred to a new owner — including through inheritance — the property is generally uncapped meaning it is reassessed at current market value. This can significantly increase property taxes for heirs who inherit Michigan real estate. An exception exists for transfers to a child who uses the property as a principal residence. Michigan residents should discuss property tax implications with an estate planning attorney when planning real estate transfers.
Michigan probate Michigan uses the Estates and Protected Individuals Code — EPIC — to govern probate and estate administration. Michigan offers several options for passing assets outside of probate including revocable living trusts transfer on death designations for bank and investment accounts and ladybird deeds for real estate.
Michigan Advance Directives
Michigan law recognizes the following advance directive documents:
Michigan Durable Power of Attorney for Health Care Names a patient advocate to make medical decisions on your behalf when you are unable to do so. Michigan uses the term patient advocate rather than healthcare agent. Must be signed and witnessed by two adults who are not the patient advocate.
Michigan Advance Directive — Patient Advocate Designation Michigan’s advance directive is called a Patient Advocate Designation. It can include instructions about healthcare decisions and end of life treatment preferences.
Michigan Do Not Resuscitate Order — DNR A physician order directing healthcare providers not to perform CPR. Michigan has a specific DNR order form and protocol.
Michigan POLST — Physician Orders for Life-Sustaining Treatment Michigan uses a Medical Orders for Scope of Treatment — MOST — form for seriously ill patients that documents specific medical orders regarding CPR hospitalization and artificial nutrition. Must be signed by a physician.
Michigan Advance Directive Registry Michigan does not maintain a statewide advance directive registry. Copies of your advance directive should be given to your patient advocate physician and any hospital or care facility where you receive care.
Free Michigan advance directive forms Free Michigan-specific advance directive forms are available at caringinfo.org and from the Michigan State Medical Society at msms.org.
Michigan Key Agencies and Resources
Michigan Department of Health and Human Services — MDHHS Administers Michigan Medicaid and processes eligibility applications. Website: michigan.gov/mdhhs MI Bridges Online Portal: mibridges.michigan.gov Phone: 1-888-642-4845
Michigan Aging and Adult Services Agency — AASA Coordinates programs and services for older Michiganders including the MI Choice Waiver home care program and caregiver support programs. Website: michigan.gov/mdhhs/keep-mi-healthy/aging
Michigan Area Agencies on Aging Michigan is served by 16 Area Agencies on Aging that coordinate local services for older adults and caregivers. Eldercare Locator: 1-800-677-1116 or eldercare.acl.gov Michigan Elder Law Hotline: 1-800-347-5297
Michigan Long Term Care Ombudsman Program Advocates for the rights of residents of nursing homes and long term care facilities. Investigates complaints and helps resolve problems free of charge. Website: miombudsman.org Phone: 1-866-485-9393
Michigan SHINE Program — Serving Health Insurance Needs of Everyone Provides free Medicare counseling to Michigan residents through a network of trained volunteer counselors. Website: michigan.gov/shine Phone: 1-800-803-7174
State Bar of Michigan Lawyer Referral Service Connects Michiganders with attorneys including those who specialize in elder law and estate planning. Website: michbar.org Phone: 1-800-968-0738
Michigan Legal Help Provides free legal information and resources for Michigan residents including seniors on issues related to Medicaid benefits housing and elder law. Website: michiganlegalhelp.org
Michigan Veterans Resources
Michigan Veterans Affairs Agency — MVAA Provides services and benefits to Michigan veterans and their families including free VA claims assistance and connections to Michigan veterans resources. Website: michigan.gov/mvaa Phone: 1-800-642-4838
Michigan State Veterans Homes Michigan operates veterans homes providing long term care to eligible veterans and their spouses. Facilities are located in Grand Rapids and Marquette. Website: michigan.gov/mvaa/veterans-homes
Michigan Veterans Trust Fund Provides emergency financial assistance to eligible Michigan veterans and their dependents facing temporary economic hardship. Website: michigan.gov/mvaa/veterans-trust-fund
Michigan Senior Property Tax Benefits
Homestead Property Tax Credit Michigan offers a homestead property tax credit to eligible lower income homeowners and renters. Seniors aged 65 and older may qualify for enhanced credits. Apply using Form MI-1040CR with your Michigan state income tax return.
Senior Citizen Exemption Michigan local governments may offer additional property tax exemptions to qualifying seniors based on age and income. Contact your local assessor’s office for information about exemptions available in your area.
Principal Residence Exemption Michigan homeowners who occupy their home as a primary residence are entitled to a principal residence exemption that reduces the school operating tax portion of their property taxes. This exemption must be claimed and may need to be refiled after property transfers including inheritance.
Finding Elder Law and Estate Planning Attorneys in Michigan
The following resources can help you find a qualified elder law or estate planning attorney in Michigan:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory by location
- State Bar of Michigan Lawyer Referral Service — michbar.org — 1-800-968-0738
- Michigan Chapter of NAELA — Michigan has an active NAELA chapter with members throughout the state
- Michigan Legal Help — michiganlegalhelp.org — free legal information for income-qualifying seniors
- Michigan Elder Law Hotline — 1-800-347-5297 — free legal assistance for seniors
The information on this page is for general informational purposes only and does not constitute legal or financial advice. Michigan Medicaid 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