This page provides a plain-English summary of key elder care and estate planning information specific to New Jersey residents. It covers New Jersey Medicaid limits, inheritance tax rules, advance directive information, and links to important New Jersey 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.
New Jersey Medicaid — 2026 Eligibility Limits for Long Term Care
New Jersey’s Medicaid program is called NJ FamilyCare and is administered by the New Jersey Department of Human Services Division of Medical Assistance and Health Services. The long term care component is primarily delivered through the Managed Long Term Services and Supports program — MLTSS — which covers nursing home care assisted living and home based care through managed care organizations. New Jersey expanded Medicaid under the Affordable Care Act in 2014.
Important — MLTSS has no waitlist New Jersey’s MLTSS program is an entitlement program meaning anyone who meets the financial and functional eligibility requirements is guaranteed services with no waiting list. This replaced the former Global Options Waiver program which did have waitlists and is a significant advantage for New Jersey residents needing long term care.
Income limit — single applicant The income limit for a single nursing home or MLTSS applicant is $2,982 per month in 2026. New Jersey is an income cap state meaning applicants whose income exceeds this limit must establish a Qualified Income Trust — also called a Miller Trust or QIT — to qualify. Excess income is deposited monthly into the trust and used toward the cost of care.
Asset limit — single applicant A single applicant must have $2,000 or less in countable assets. Exempt assets include the primary residence with equity up to $1,130,000 — one of the highest home equity limits in the country reflecting New Jersey’s extremely high real estate values — if the applicant intends to return home, one vehicle, personal belongings and household furnishings, and irrevocable burial trusts.
Home and community based care — MLTSS home based services New Jersey’s MLTSS program covers home based care in addition to nursing home and assisted living care under the same financial eligibility rules. The asset limit is $2,000 and the income limit is $2,982 per month. MLTSS home based recipients who remain in their own home or a family member’s home are not required to contribute income toward care costs — there is no patient liability for home based MLTSS recipients. This is a significant financial advantage compared to nursing home placement.
Assisted living under MLTSS New Jersey extends MLTSS Medicaid coverage to assisted living facilities. However families should be aware that most New Jersey assisted living facilities require a private payment period of two years or more before accepting Medicaid residents and facilities are only required to allocate 10 percent of their beds to Medicaid residents. Planning ahead is essential for families considering assisted living.
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.
Monthly Maintenance Needs Allowance The minimum Monthly Maintenance Needs Allowance for the community spouse is $2,643.75 per month in 2026. The maximum is $4,066.50 per month for community spouses with high 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 New Jersey nursing home MLTSS recipients are allowed to keep $50 per month as a personal needs allowance. MLTSS residents in assisted living facilities may keep $140.15 per month. The remainder of income is applied toward the cost of care.
Medically needy spend-down program New Jersey also offers a medically needy pathway for applicants whose income exceeds the standard limits. The medically needy income limit is $367 per month for a single individual. Applicants calculate their spend-down amount — the difference between their income and this limit — over a 6-month period and apply that amount toward qualifying medical expenses to become eligible.
PAAD — Pharmaceutical Assistance to the Aged and Disabled New Jersey offers a prescription drug assistance program called PAAD for seniors and disabled residents who earn too much for full Medicaid but still need help with medication costs. PAAD covers prescriptions for individuals earning under approximately $54,943 per year. This fills an important gap for seniors who narrowly miss Medicaid income thresholds.
Look-back period and divestment penalty New Jersey has a 60-month — five year — look-back period for nursing home Medicaid and MLTSS. 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 daily divestment penalty divisor is $402.74.
Estate recovery New Jersey 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 New Jersey Medicaid Applications can be submitted online at njfamilycare.org, by phone at 1-800-701-0710, or in person at your local County Board of Social Services.
New Jersey Medicaid administering agency New Jersey Department of Human Services — nj.gov/humanservices
New Jersey Inheritance Tax — 2026
New Jersey has a distinctive and important tax situation. The state eliminated its estate tax in 2018 but continues to impose an inheritance tax making it one of only a handful of states in the country — along with Kentucky Maryland Nebraska and Pennsylvania — that still imposes an inheritance tax on beneficiaries.
No New Jersey estate tax New Jersey does not impose a state estate tax on estates of residents who died on or after January 1 2018. No New Jersey estate tax return is required and no state estate tax is owed regardless of the size of the estate.
New Jersey inheritance tax — still in effect New Jersey’s inheritance tax is levied on beneficiaries based on their relationship to the deceased. The tax rate and exemption depend on which class the beneficiary falls into.
Class A beneficiaries — fully exempt Class A beneficiaries pay no New Jersey inheritance tax regardless of the amount inherited. Class A includes spouses domestic partners civil union partners parents grandparents children grandchildren and great-grandchildren. For most New Jersey families passing assets to immediate family members no inheritance tax applies.
Class C beneficiaries — siblings Siblings of the deceased are Class C beneficiaries. The first $25,000 inherited is exempt. Amounts above $25,000 are taxed at rates between 11 and 16 percent depending on the amount inherited.
Class D beneficiaries — all others Class D includes nieces nephews friends and most other beneficiaries. Only the first $500 is exempt. Amounts above $500 are taxed at 15 percent up to $700,000 and 16 percent on amounts above $700,000. New Jersey’s Class D rate is among the highest inheritance tax rates in the country.
Class E beneficiaries — charities Qualified charitable organizations are fully exempt from New Jersey inheritance tax.
What property is subject to New Jersey inheritance tax The inheritance tax applies to most New Jersey property including real estate bank accounts stocks bonds business interests and tangible personal property. Property located outside New Jersey is generally exempt. Life insurance proceeds paid directly to a named beneficiary are exempt from New Jersey inheritance tax even for Class C and D beneficiaries — making life insurance a useful planning tool for leaving assets to non-immediate family members.
Important planning consideration The New Jersey inheritance tax can create unexpected tax bills for estates that leave assets to siblings nieces nephews or unrelated individuals. This is particularly important for New Jersey residents who do not have children or a surviving spouse. Consulting a New Jersey estate planning attorney is strongly recommended for anyone whose intended beneficiaries fall into Class C or Class D.
Federal estate tax New Jersey residents may also be subject to the federal estate tax. The federal estate tax exemption is $15,000,000 per person in 2026. The exemption is portable between spouses.
No New Jersey gift tax New Jersey does not impose a state gift tax. Federal gift tax rules apply — the annual gift tax exclusion is $19,000 per recipient in 2026.
New Jersey Advance Directives
New Jersey law recognizes the following advance directive documents:
New Jersey Advance Directive for Health Care New Jersey uses a single combined Advance Directive for Health Care form that includes both the healthcare proxy — naming a healthcare representative — and the living will — documenting treatment wishes. Must be signed and witnessed by two adults who are not the healthcare representative.
New Jersey POLST — Physician Orders for Life-Sustaining Treatment New Jersey uses a POLST form for seriously ill patients that documents specific medical orders regarding CPR hospitalization and artificial nutrition. Must be signed by a physician or advanced practice nurse.
New Jersey Advance Directive Registry New Jersey does not maintain a statewide advance directive registry. Copies of your advance directive should be given to your healthcare representative physician and any hospital or care facility where you receive care.
Free New Jersey advance directive forms Free New Jersey-specific advance directive forms are available at caringinfo.org and from the New Jersey Hospital Association at njha.com.
New Jersey Key Agencies and Resources
New Jersey Department of Human Services — Division of Medical Assistance and Health Services Administers NJ FamilyCare — New Jersey Medicaid — including MLTSS long term care programs. Website: nj.gov/humanservices/dmahs NJ FamilyCare Portal: njfamilycare.org Phone: 1-800-701-0710
New Jersey Division of Aging Services — DOAS Coordinates programs and services for older New Jerseyans including home care nutrition programs caregiver support and the New Jersey SHIP program for free Medicare counseling. Website: nj.gov/humanservices/doas Phone: 1-877-222-3737 NJ SHIP — free Medicare counseling: 1-800-792-8820
New Jersey Area Agencies on Aging New Jersey is served by 21 county-based Area Agencies on Aging that coordinate local services for older adults and caregivers. Eldercare Locator: 1-800-677-1116 or eldercare.acl.gov
New Jersey Long Term Care Ombudsman Advocates for the rights of residents of nursing homes and assisted living facilities. Investigates complaints and helps resolve problems free of charge. Website: nj.gov/health/ltcop Phone: 1-877-582-6995
New Jersey Division of Taxation — Inheritance Tax Administers New Jersey’s inheritance tax. Website: nj.gov/treasury/taxation/inheritance-estate Phone: 1-609-292-5033
New Jersey State Bar Association Lawyer Referral Service Connects New Jerseyans with attorneys including those who specialize in elder law and estate planning. Website: njsba.com Phone: 1-732-249-5000
Legal Services of New Jersey Provides free civil legal services to low income New Jerseyans including seniors on issues related to Medicaid benefits housing and elder law. Website: lsnj.org Phone: 1-888-576-5529
New Jersey Veterans Resources
New Jersey Department of Military and Veterans Affairs — NJDMAVA Provides services and benefits to New Jersey veterans and their families including free VA claims assistance and connections to New Jersey veterans resources. Website: nj.gov/military Phone: 1-888-865-8387
New Jersey State Veterans Homes New Jersey operates veterans homes providing long term care to eligible veterans and their spouses. Facilities are located in Paramus Vineland and Menlo Park. Website: nj.gov/military/veterans/programs-services/veterans-homes
New Jersey Senior Property Tax Benefits
Senior Freeze — Property Tax Reimbursement Program New Jersey offers a Senior Freeze program that reimburses eligible homeowners aged 65 and older for property tax increases. Participants must meet income requirements and have lived in New Jersey for at least 10 years. The program freezes the property tax base at the year the applicant first qualifies and reimburses increases above that base. Apply through the New Jersey Division of Taxation.
ANCHOR Program — Affordable New Jersey Communities for Homeowners and Renters New Jersey’s ANCHOR program provides property tax relief to homeowners and renters who meet income requirements. Homeowners may receive up to $1,500 and renters up to $450 annually depending on income. Seniors may qualify for enhanced benefits.
Senior Property Tax Deduction New Jersey homeowners aged 65 and older or permanently and totally disabled who meet income requirements may qualify for a $250 annual property tax deduction. Apply through your local tax assessor’s office.
Finding Elder Law and Estate Planning Attorneys in New Jersey
The following resources can help you find a qualified elder law or estate planning attorney in New Jersey:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory by location
- New Jersey State Bar Association Lawyer Referral Service — njsba.com — 1-732-249-5000
- New Jersey Chapter of NAELA — New Jersey has an active NAELA chapter with members throughout the state
- Legal Services of New Jersey — lsnj.org — free legal assistance for income-qualifying seniors — 1-888-576-5529
The information on this page is for general informational purposes only and does not constitute legal or financial advice. New Jersey Medicaid rules inheritance tax rates 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: April 2026