This page provides a plain-English summary of key elder care and estate planning information specific to Colorado residents. It covers Colorado Medicaid limits, estate tax rules, advance directive information, and links to important Colorado 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.
Colorado Medicaid — 2026 Eligibility Limits for Long Term Care
Colorado’s Medicaid program is called Health First Colorado and is administered by the Colorado Department of Health Care Policy and Financing — HCPF. Colorado expanded Medicaid under the Affordable Care Act in 2014 providing broad coverage to lower income residents.
Income limit — single applicant The income limit for a single nursing home or HCBS Waiver Medicaid applicant is $2,982 per month in 2026. Colorado 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 $1,130,000 — Colorado uses the federal maximum home equity limit reflecting the state’s high real estate values particularly in the Denver metro Boulder and mountain resort areas — 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 are counted as countable assets in Colorado.
Home and community based care — Elderly Blind and Disabled Waiver Colorado’s primary HCBS program for seniors is the Elderly Blind and Disabled Waiver — EBD Waiver. The EBD Waiver provides home and community based services for people who need nursing facility level care but want to remain at home or in a community setting. The asset limit is $2,000 for a single applicant and the income limit is $2,982 per month. As of 2026 the EBD Waiver has no enrollment cap and no waitlist — meeting eligibility requirements means receiving services.
Community First Choice — CFC Colorado’s Community First Choice — CFC — program provides personal care services in the home. CFC uses the same income and asset limits as the EBD Waiver and nursing home Medicaid. CFC is an entitlement program with no waitlist.
Colorado Medicaid and high housing costs Colorado’s high cost of living — particularly in the Denver metro Boulder and mountain resort communities — makes long term care planning especially important. The average monthly cost of a nursing home in Colorado is approximately $10,200 per month in 2026. Colorado’s $1,130,000 home equity exemption is particularly relevant given the state’s high home values. However the state is also noted for thorough financial audits of Medicaid applications and applicants should gather complete 60-month financial records before applying.
Married couples — one spouse applying When only one spouse applies for Colorado 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. In Colorado’s high-cost housing markets most community spouses in the Denver metro area will qualify for the higher housing cost allowance.
Personal needs allowance Colorado nursing home Medicaid recipients are allowed to keep $110.36 per month as a personal needs allowance — higher than many states. The remainder of income is applied toward the cost of care.
Look-back period and divestment penalty Colorado has a 60-month — five year — look-back period for nursing home Medicaid and EBD 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 Colorado is approximately $9,500 per month.
Estate recovery Colorado requires Medicaid estate recovery. After a Health First Colorado 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 Colorado Health First Colorado Medicaid Applications can be submitted online through Colorado PEAK at coloradopeak.force.com, by phone at 1-800-221-3943, or in person at your local county department of human services office.
Colorado Medicaid administering agency Colorado Department of Health Care Policy and Financing — hcpf.colorado.gov
Colorado Estate Tax — 2026
No Colorado state estate tax Colorado does not impose a state estate tax. Colorado’s estate tax was tied to the federal state death tax credit which was eliminated by federal law effective January 1 2005. As a result no Colorado estate tax has applied since 2005 and the state has not enacted a replacement.
No Colorado inheritance tax Colorado does not impose an inheritance tax. Colorado repealed its inheritance tax decades ago. Beneficiaries who receive assets from a Colorado decedent owe no Colorado inheritance tax regardless of the size of the inheritance.
Federal estate tax Colorado 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 Colorado gift tax Colorado 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 Colorado receive a stepped-up tax basis to fair market value at the date of the original owner’s death. This is particularly valuable in Colorado where real estate values have appreciated significantly. A beneficiary who inherits a home or investment property pays capital gains tax only on appreciation that occurs after the date of inheritance — not on gains that accrued during the original owner’s lifetime.
Colorado income tax Colorado has a flat state income tax rate of 4.40 percent. Social Security benefits are partially taxed in Colorado. Retirement account withdrawals and pension income are subject to Colorado income tax. Colorado seniors may qualify for a pension and annuity subtraction on their state tax return.
Out-of-state property considerations While Colorado imposes no inheritance or estate tax Colorado residents who own real property in other states should be aware that those states may impose their own taxes. Colorado residents with property in states that have estate taxes such as Illinois Minnesota Oregon or Washington should consult an estate planning attorney about potential tax exposure in those states.
Colorado Advance Directives
Colorado law recognizes the following advance directive documents:
Colorado Medical Durable Power of Attorney Names a healthcare agent to make medical decisions on your behalf when you are unable to do so. Must be signed and witnessed by one adult who is not the healthcare agent or notarized.
Colorado Declaration as to Medical or Surgical Treatment — Living Will Documents your wishes regarding life-sustaining treatment when you have a terminal condition. Must be signed and witnessed by two adults or notarized.
Colorado MOST — Medical Orders for Scope of Treatment Colorado uses a MOST 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.
Colorado Do Not Resuscitate Order — DNR A physician order directing emergency personnel not to perform CPR. Colorado has standardized out-of-hospital DNR protocols.
Colorado Advance Directive Registry Colorado 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 Colorado advance directive forms Free Colorado-specific advance directive forms are available at caringinfo.org and from the Colorado Bar Association at cobar.org.
Colorado Key Agencies and Resources
Colorado Department of Health Care Policy and Financing — HCPF Administers Health First Colorado — Colorado Medicaid — including long term care programs. Website: hcpf.colorado.gov Colorado PEAK Portal: coloradopeak.force.com Phone: 1-800-221-3943
Colorado Department of Human Services — CDHS — Aging and Adult Services Coordinates programs and services for older Coloradans including home care nutrition programs caregiver support and the Colorado SHIP program for free Medicare counseling. Website: cdhs.colorado.gov/older-adults Phone: 1-303-866-2800 Colorado SHIP — free Medicare counseling: 1-888-696-7213
Colorado Area Agencies on Aging Colorado 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
Colorado 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: cdhs.colorado.gov/long-term-care-ombudsman Phone: 1-800-288-1376
Colorado Bar Association Lawyer Referral Service Connects Coloradans with attorneys including those who specialize in elder law and estate planning. Website: cobar.org Phone: 1-303-860-1115
Colorado Legal Services Provides free civil legal services to low income Coloradans including seniors on issues related to Medicaid benefits housing and elder law. Website: coloradolegalservices.org Phone: 1-303-837-1313
Colorado Veterans Resources
Colorado Division of Veterans Affairs — CDVA Provides services and benefits to Colorado veterans and their families including free VA claims assistance and connections to Colorado veterans resources. Website: dmva.colorado.gov Phone: 1-303-284-6077
Colorado State Veterans Nursing Homes Colorado operates veterans nursing homes providing long term care to eligible veterans and their spouses. Facilities are located in Aurora Florence Homelake Rifle and Walsenburg. Website: dmva.colorado.gov/colorado-state-veterans-nursing-homes
Colorado Senior Property Tax Benefits
Senior Property Tax Exemption Colorado homeowners aged 65 and older who have owned and occupied their primary residence for at least 10 consecutive years may qualify for a property tax exemption. The exemption reduces the assessed value of the home by 50 percent on the first $200,000 of actual value. Apply through your county assessor’s office by July 15 of the year for which you are claiming the exemption.
Property Tax Deferral Program Colorado offers a property tax deferral program for seniors aged 65 and older and active military personnel. Qualifying homeowners can defer all or part of their property taxes until the property is sold transferred or no longer used as the primary residence. Apply through your county treasurer.
Disabled Veteran Property Tax Exemption Colorado veterans with a service-connected disability rating of 100 percent permanent and total may qualify for a 50 percent reduction on the first $200,000 of actual value of their primary residence. Apply through your county assessor.
Finding Elder Law and Estate Planning Attorneys in Colorado
The following resources can help you find a qualified elder law or estate planning attorney in Colorado:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory by location
- Colorado Bar Association Lawyer Referral Service — cobar.org — 1-303-860-1115
- Colorado Chapter of NAELA — Colorado has an active NAELA chapter with members throughout the state
- Colorado Legal Services — coloradolegalservices.org — free legal assistance for income-qualifying seniors
The information on this page is for general informational purposes only and does not constitute legal or financial advice. Colorado 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