This page provides a plain-English summary of key elder care and estate planning information specific to Indiana residents. It covers Indiana Medicaid limits, estate tax rules, advance directive information, and links to important Indiana 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.
Indiana Medicaid — 2026 Eligibility Limits for Long Term Care
Indiana’s Medicaid program is administered by the Indiana Family and Social Services Administration — FSSA. Long term care for seniors is delivered primarily through Indiana Medicaid nursing home coverage and the Aged and Disabled Waiver — A&D Waiver — for home and community based care. Indiana expanded Medicaid under the Affordable Care Act through the Healthy Indiana Plan — HIP — providing coverage to a broader range of residents.
Income limit — single applicant The income limit for a single Indiana nursing home Medicaid applicant is $2,982 per month in 2026. Indiana 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.
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. Note that IRAs and 401(k)s of both the applicant and their spouse are counted as countable assets in Indiana.
De minimis transfer allowance — unique to Indiana Indiana has a unique rule that allows Medicaid applicants to gift up to $1,200 in total annually to family members or tax-exempt nonprofit organizations without violating the look-back period. This small annual gift allowance is unusual among states and can be helpful for families doing incremental planning.
Home and community based care — Aged and Disabled Waiver Indiana’s A&D Waiver provides home and community based services for people who need nursing home level care but want to remain at home. The asset limit is $2,000 for a single applicant and the income limit is $2,982 per month. Note that the A&D Waiver is not an entitlement and may have limited enrollment slots and waiting lists.
PathWays for Aging Indiana operates PathWays for Aging as its managed care program for seniors aged 60 and older who are dually eligible for Medicare and Medicaid. PathWays coordinates medical and long term care services through managed care organizations.
Married couples — one spouse applying When only one spouse applies for Indiana 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 $2,644 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 Indiana nursing home Medicaid recipients are allowed to keep $52 per month as a personal needs allowance. The remainder of income is applied toward the cost of care.
Look-back period and divestment penalty Indiana has a 60-month — five year — look-back period for nursing home Medicaid and A&D Waiver 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 Indiana is approximately $7,651 per month — meaning the penalty period is calculated by dividing the disqualifying transfer amount by $7,651.
Estate recovery Indiana requires Medicaid estate recovery for recipients aged 55 and older. After an Indiana 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 Indiana Medicaid Applications can be submitted online through the FSSA Benefits Portal at fssabenefits.in.gov, by phone at 1-800-403-0864, or in person at your local Division of Family Resources — DFR — office.
Indiana Medicaid administering agency Indiana Family and Social Services Administration — fssa.in.gov
Indiana Estate Tax — 2026
No Indiana state estate tax Indiana does not impose a state estate tax. Indiana repealed its inheritance tax — which functioned as a state-level death tax — effective January 1 2013. No Indiana estate tax applies regardless of the size of the estate.
No Indiana inheritance tax Indiana does not impose an inheritance tax. The state’s inheritance tax was fully repealed in 2013. Beneficiaries who receive assets from an Indiana decedent owe no Indiana inheritance tax regardless of their relationship to the deceased or the size of the inheritance.
Federal estate tax Indiana 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 Indiana gift tax Indiana does not impose a state gift tax. Federal gift tax rules apply — the annual gift tax exclusion is $19,000 per recipient in 2026.
Step-up in basis Inherited assets in Indiana receive a stepped-up tax basis to fair market value at the date of the original owner’s death. This can significantly reduce capital gains taxes when beneficiaries later sell inherited property.
Indiana income tax Indiana has a flat state income tax rate of 3 percent — one of the lower flat rates in the country. Local governments may impose additional income taxes ranging from 0.5 to 3 percent. Social Security benefits are not taxed in Indiana. Retirement account withdrawals and pension income are subject to the state income tax.
Out-of-state property considerations While Indiana imposes no inheritance or estate tax Indiana residents who own real property in other states should be aware that those states may impose their own estate or inheritance taxes. Indiana residents with property in Kentucky Maryland Nebraska New Jersey or Pennsylvania should consult an estate planning attorney about potential tax exposure in those states.
Indiana Advance Directives
Indiana law recognizes the following advance directive documents:
Indiana Health Care Representative Appointment Names a health care representative to make medical decisions on your behalf when you are unable to do so. Must be signed and witnessed by two adults who are not the health care representative or notarized.
Indiana Living Will Declaration Documents your wishes regarding life-sustaining treatment when you have a terminal condition or are in a persistent vegetative state. Must be signed and witnessed by two adults.
Indiana Physician Orders for Scope of Treatment — POST Indiana uses a POST form for seriously ill patients that documents specific medical orders regarding CPR hospitalization and artificial nutrition. Must be signed by a physician.
Indiana Out-of-Hospital Do Not Resuscitate Order A physician order directing emergency personnel not to perform CPR. Indiana has standardized out-of-hospital DNR protocols.
Indiana Advance Directive Registry Indiana does not maintain a statewide advance directive registry. Copies of your advance directive should be given to your health care representative physician and any hospital or care facility where you receive care.
Free Indiana advance directive forms Free Indiana-specific advance directive forms are available at caringinfo.org and from the Indiana State Medical Association at ismanet.org.
Indiana Key Agencies and Resources
Indiana Family and Social Services Administration — FSSA Administers Indiana Medicaid including the A&D Waiver long term care program. Website: fssa.in.gov FSSA Benefits Portal: fssabenefits.in.gov Phone: 1-800-403-0864
Indiana Division of Aging Coordinates programs and services for older Hoosiers including home care nutrition programs caregiver support and the Indiana SHIP program for free Medicare counseling. Website: in.gov/fssa/da Phone: 1-888-673-0002 Indiana SHIP — free Medicare counseling: 1-800-452-4800
Indiana Area Agencies on Aging Indiana 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
Indiana 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: in.gov/fssa/da/long-term-care-ombudsman Phone: 1-800-622-4484
Indiana State Bar Association Lawyer Referral Service Connects Hoosiers with attorneys including those who specialize in elder law and estate planning. Website: inbar.org Phone: 1-800-266-2581
Indiana Legal Services Provides free civil legal services to low income Indiana residents including seniors on issues related to Medicaid benefits housing and elder law. Website: indianalegalservices.org Phone: 1-800-869-0212
Indiana Veterans Resources
Indiana Department of Veterans Affairs — IDVA Provides services and benefits to Indiana veterans and their families including free VA claims assistance and connections to Indiana veterans resources. Website: in.gov/dva Phone: 1-317-232-3910
Indiana State Veterans Homes Indiana operates veterans homes providing long term care to eligible veterans and their spouses. Facilities are located in Lafayette and Putnamville. Website: in.gov/dva/veterans-homes
Indiana Veterans Service Organizations Indiana has active chapters of major veterans service organizations including the American Legion — founded in Indianapolis in 1919 — VFW DAV and others that can assist veterans with VA claims and benefits.
Indiana Senior Property Tax Benefits
Over 65 Deduction Indiana homeowners aged 65 and older who meet income and assessed value requirements may qualify for a deduction of up to $14,000 from the assessed value of their primary residence. Both the individual income limit and the property assessed value limit apply. Apply through your county auditor’s office.
Over 65 Circuit Breaker Credit Indiana provides additional property tax relief through circuit breaker caps that limit property taxes to a percentage of gross assessed value. Senior homeowners may benefit from these caps which prevent property taxes from becoming an undue burden.
Homestead Standard Deduction Indiana homeowners who occupy their home as a primary residence are entitled to a homestead standard deduction of up to $48,000 from the assessed value of the home regardless of age.
Disabled Veteran Property Tax Deduction Indiana veterans with service-connected disabilities of 10 percent or more may qualify for property tax deductions. Veterans with a total disability rating may qualify for a complete exemption from property taxes on their primary residence.
Finding Elder Law and Estate Planning Attorneys in Indiana
The following resources can help you find a qualified elder law or estate planning attorney in Indiana:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory by location
- Indiana State Bar Association Lawyer Referral Service — inbar.org — 1-800-266-2581
- Indiana Chapter of NAELA — Indiana has an active NAELA chapter with members throughout the state
- Indiana Legal Services — indianalegalservices.org — free legal assistance for income-qualifying seniors — 1-800-869-0212
The information on this page is for general informational purposes only and does not constitute legal or financial advice. Indiana 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: April 2026