This page provides a plain-English summary of key elder care and estate planning information specific to Tennessee residents. It covers Tennessee Medicaid limits, estate tax rules, advance directive information, and links to important Tennessee 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.
Tennessee Medicaid — 2026 Eligibility Limits for Long Term Care
Tennessee’s Medicaid program is called TennCare and is administered by the Tennessee Department of Finance and Administration. Long term care for seniors is delivered primarily through the TennCare CHOICES program which covers nursing home care and home and community based services. Tennessee has not expanded Medicaid under the Affordable Care Act meaning most healthy adults aged 19 to 64 without disabilities or dependent children do not qualify for standard TennCare coverage.
Income limit — single applicant The income limit for a single TennCare CHOICES applicant is $2,982 per month in 2026. Tennessee 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 monthly income is deposited into the trust and applied 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 $752,000 if the applicant intends to return home, one vehicle, personal belongings and household furnishings, and irrevocable burial trusts up to $6,000. Note that IRAs and 401(k)s are counted as countable assets in Tennessee.
TennCare CHOICES — home and community based care The TennCare CHOICES program covers both nursing home care and home and community based services for qualifying seniors. Seniors who meet the nursing facility level of care standard may choose to receive care at home through CHOICES rather than entering a nursing facility. The financial eligibility requirements are the same for both settings.
Married couples — one spouse applying When only one spouse applies for TennCare CHOICES 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 Tennessee nursing home TennCare recipients are allowed to keep $70 per month as a personal needs allowance. The remainder of income is applied toward the cost of care.
Look-back period and divestment penalty Tennessee has a 60-month — five year — look-back period for TennCare CHOICES nursing home and HCBS applications. 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 Tennessee is approximately $8,580 per month — meaning the penalty period is calculated by dividing the disqualifying transfer amount by $8,580.
Estate recovery Tennessee requires Medicaid estate recovery for recipients aged 55 and older. After a TennCare 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 TennCare Applications can be submitted online at tn.gov/tenncare through TennCare Connect, by phone at 1-855-259-0701, or in person at your local Tennessee Department of Human Services — DHS — office.
Tennessee Medicaid administering agency Tennessee Division of TennCare — tn.gov/tenncare
Tennessee Estate Tax — 2026
Tennessee is one of the most tax-friendly states in the country for retirees and estate planning purposes.
No Tennessee state estate tax Tennessee does not impose a state estate tax. Tennessee repealed what it called its inheritance tax — which functioned as a state estate tax — effective December 31 2015. For deaths occurring in 2016 or later no Tennessee estate tax applies regardless of the size of the estate.
No Tennessee inheritance tax Tennessee does not impose an inheritance tax. The state’s former inheritance tax was fully repealed as of January 1 2016. Beneficiaries who receive assets from a Tennessee decedent owe no Tennessee inheritance tax regardless of their relationship to the deceased or the size of the inheritance.
No Tennessee income tax on retirement income Tennessee does not impose a state income tax on wages retirement account withdrawals pension income or Social Security benefits. This makes Tennessee exceptionally attractive for retirees. The state’s Hall Income Tax which applied to interest and dividend income was also fully repealed effective January 1 2021.
Federal estate tax Tennessee 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 Tennessee gift tax Tennessee does not impose a state gift tax. Federal gift tax rules apply — the annual gift tax exclusion is $19,000 per recipient in 2026.
Out-of-state property considerations While Tennessee imposes no inheritance or estate tax Tennessee residents who own real property in other states should be aware that those states may impose their own estate or inheritance taxes on that property. Tennessee residents with property in Kentucky Maryland Nebraska New Jersey or Pennsylvania should consult an estate planning attorney about potential tax exposure in those states.
Tennessee asset protection trusts Tennessee is one of a limited number of states that permits self-settled domestic asset protection trusts — also called Tennessee Investment Services Trusts or TISTs. These trusts allow Tennessee residents to protect assets from future creditors while potentially retaining some benefit from the trust. This is an advanced estate planning tool that requires an experienced Tennessee estate planning attorney.
Property taxes Tennessee has very low property taxes with an average effective property tax rate of approximately 0.45 percent — one of the lowest in the country.
Tennessee Advance Directives
Tennessee law recognizes the following advance directive documents:
Tennessee Advance Care Plan Tennessee uses a combined advance directive document that includes the appointment of a healthcare agent and treatment instructions. Must be signed and witnessed by two adults who are not the healthcare agent.
Tennessee Durable Power of Attorney for Health Care Names a healthcare agent to make medical decisions on your behalf when you are unable to do so. Can be included within the Tennessee Advance Care Plan.
Tennessee POLST — Physician Orders for Life-Sustaining Treatment Tennessee 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 authorized healthcare provider.
Tennessee Do Not Resuscitate Order A physician order directing emergency personnel not to perform CPR. Tennessee has standardized DNR protocols for out-of-hospital settings.
Tennessee Advance Directive Registry Tennessee does not maintain a statewide advance directive registry. Copies of your advance directive should be given to your healthcare agent physician and any hospital or care facility where you receive care.
Free Tennessee advance directive forms Free Tennessee-specific advance directive forms are available at caringinfo.org and from the Tennessee Medical Association at tnmed.org.
Tennessee Key Agencies and Resources
Tennessee Division of TennCare Administers TennCare — Tennessee Medicaid — including the CHOICES long term care program. Website: tn.gov/tenncare TennCare Connect: tn.gov/tenncare Phone: 1-855-259-0701
Tennessee Commission on Aging and Disability — TCAD Coordinates programs and services for older Tennesseans including home care nutrition programs caregiver support and the Tennessee SHIP program for free Medicare counseling. Website: tn.gov/aging Phone: 1-615-741-2056 Tennessee SHIP — free Medicare counseling: 1-877-801-0044
Tennessee Area Agencies on Aging and Disability Tennessee is served by nine Area Agencies on Aging and Disability that coordinate local services for older adults and caregivers. Eldercare Locator: 1-800-677-1116 or eldercare.acl.gov
Tennessee Long Term Care Ombudsman Program Advocates for the rights of residents of nursing homes and assisted living facilities. Investigates complaints and helps resolve problems free of charge. Website: tn.gov/aging/our-programs/long-term-care-ombudsman-program.html Phone: 1-877-236-0013
Tennessee Bar Association Lawyer Referral Service Connects Tennesseans with attorneys including those who specialize in elder law and estate planning. Website: tba.org Phone: 1-615-383-7421
Legal Aid Society of Middle Tennessee and the Cumberlands Provides free civil legal services to low income Tennesseans including seniors on issues related to Medicaid benefits housing and elder law. Website: las.org Phone: 1-800-238-1443
Tennessee Alliance for Legal Services Connects Tennesseans with free legal aid resources statewide. Website: tals.org
Tennessee Veterans Resources
Tennessee Department of Veterans Services — TDVS Provides services and benefits to Tennessee veterans and their families including free VA claims assistance and connections to Tennessee veterans resources. Website: tn.gov/veterans Phone: 1-615-741-2931
Tennessee State Veterans Homes Tennessee operates veterans homes providing long term care to eligible veterans and their spouses. Facilities are located in Murfreesboro Memphis Knoxville and Humboldt. Website: tn.gov/veterans/state-veterans-homes.html
Tennessee Senior Property Tax Benefits
Property Tax Relief Program for Elderly and Disabled Tennessee offers a property tax relief program for homeowners aged 65 and older who meet income requirements. The program provides reimbursement for a portion of property taxes paid on the primary residence. Income limits and benefit amounts are set by the state and updated periodically. Apply through your county trustee’s office.
Property Tax Freeze Program Tennessee allows counties and municipalities to offer a property tax freeze program for homeowners aged 65 and older who meet income requirements. The program freezes the property tax bill at the amount paid in the year the applicant first qualifies preventing future increases. Not all counties participate. Contact your local county trustee’s office to determine if the program is available in your county.
Disabled Veteran Property Tax Exemption Tennessee veterans with a 100 percent permanent and total service-connected disability rating are exempt from property taxes on their primary residence. Surviving spouses of qualifying veterans may also be eligible.
Finding Elder Law and Estate Planning Attorneys in Tennessee
The following resources can help you find a qualified elder law or estate planning attorney in Tennessee:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory by location
- Tennessee Bar Association Lawyer Referral Service — tba.org — 1-615-383-7421
- Tennessee Chapter of NAELA — Tennessee has an active NAELA chapter with members throughout the state
- Legal Aid Society of Middle Tennessee and the Cumberlands — las.org — free legal assistance for income-qualifying seniors — 1-800-238-1443
The information on this page is for general informational purposes only and does not constitute legal or financial advice. Tennessee TennCare 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: April 2026