This page provides a plain-English summary of key elder care and estate planning information specific to Delaware residents. It covers Delaware Medicaid limits, estate tax rules, advance directive information, and links to important Delaware 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.
Delaware Medicaid — 2026 Eligibility Limits for Long Term Care
Delaware’s Medicaid program is called the Diamond State Health Plan — DSHP — and is administered by the Delaware Division of Medicaid and Medical Assistance — DMMA. Delaware expanded Medicaid under the Affordable Care Act in 2014 providing coverage to adults up to 138 percent of the federal poverty level. Long term care Medicaid is provided through the DSHP-Plus program.
Income limit — single applicant — lower than most states The income limit for a single Delaware nursing home Medicaid applicant is $2,485 per month in 2026 — based on 250 percent of the Federal Benefit Rate rather than the 300 percent FBR standard used by most states. This is a Delaware policy choice that results in a lower income cap than neighboring states. Applicants with income between $2,485 and $2,982 per month — who would qualify in most other states — must use a Qualified Income Trust — also called a Miller Trust or QIT — to qualify in Delaware. Applicants with income above $2,982 also need a QIT.
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 funeral trusts. Note that IRAs and 401(k)s are counted as countable assets in Delaware.
Home and community based care — DSHP-Plus LTCCS Waiver Delaware’s primary HCBS program for seniors is the Long Term Care Community Services — LTCCS — Waiver delivered through DSHP-Plus. It provides home and community based services for Delaware residents who need nursing facility level care but want to remain at home. The asset limit is $2,000 for a single applicant and the income limit is $2,485 per month. Services include personal care homemaker services adult day services respite care assistive technology and home modifications. Contact DMMA at 1-800-372-2022 for current enrollment and availability information.
Delaware Long Term Care Partnership Program Delaware offers a Long Term Care Partnership Program that allows residents who purchase a qualifying long-term care insurance policy to protect assets dollar-for-dollar equal to the policy’s benefit payout when later applying for Medicaid. This program makes long-term care insurance significantly more valuable from a planning perspective — buyers receive both insurance coverage and Medicaid asset protection. Consult a Delaware elder law attorney and a qualified LTC insurance specialist to evaluate whether a Partnership policy fits your situation.
Married couples — one spouse applying When only one spouse applies for Delaware 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 $2,000.
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.
Personal needs allowance Delaware nursing home Medicaid recipients are allowed to keep $75 per month as a personal needs allowance. The remainder of income is applied toward the cost of care.
Look-back period and divestment penalty Delaware has a 60-month — five year — look-back period for nursing home Medicaid and LTCCS 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 Delaware is approximately $11,200 per month — above the national median reflecting Delaware’s above-average nursing home costs. This produces shorter penalty periods for equivalent transfer amounts compared to lower-cost states.
Estate recovery Delaware requires Medicaid estate recovery. After a DSHP-Plus 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 Delaware Medicaid Applications can be submitted online through Delaware ASSIST at assist.dhss.delaware.gov, by phone at 1-800-372-2022, or in person at your local Delaware DHSS office.
Delaware Medicaid administering agency Delaware Division of Medicaid and Medical Assistance — dhss.delaware.gov/dhss/dmma
Delaware Estate Tax — 2026
Delaware is one of the most tax-friendly states in the country for estate planning. Delaware eliminated its state estate tax effective for deaths on or after January 1 2018 and has no inheritance tax — making it significantly more favorable than neighboring Maryland which imposes both an estate tax and an inheritance tax.
No Delaware state estate tax Delaware does not impose a state estate tax. Delaware eliminated its estate tax effective January 1 2018. No Delaware estate tax applies to any estate regardless of size.
No Delaware inheritance tax Delaware does not impose an inheritance tax. Beneficiaries who receive assets from a Delaware decedent owe no Delaware inheritance tax regardless of the size of the inheritance or their relationship to the deceased.
Federal estate tax Delaware 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 Delaware gift tax Delaware does not impose a state gift tax. Federal gift tax rules apply — the annual gift tax exclusion is $19,000 per recipient in 2026.
Delaware income tax — favorable for retirees Delaware has a progressive income tax with rates ranging from 2.2 percent to 6.6 percent. Social Security benefits are fully exempt from Delaware income tax. Delaware offers a significant retirement income exclusion — residents aged 60 and older may exclude up to $12,500 of pension income IRA distributions and other retirement income from Delaware income tax. Residents under age 60 may exclude up to $2,000. This makes Delaware very attractive for retirees.
No Delaware sales tax Delaware has no state or local sales tax — one of only five states without a sales tax. This is one of Delaware’s most celebrated tax advantages and drives significant retail activity in the state particularly near the Pennsylvania and Maryland borders.
Delaware as a trust and corporate jurisdiction Delaware is the corporate and trust jurisdiction of choice for much of the United States. More than 1.9 million business entities are incorporated in Delaware — more than the state’s total population. Delaware’s Court of Chancery provides specialized expertise in business and trust law. Delaware’s favorable trust laws including directed trusts and dynasty trusts make it an attractive state for sophisticated estate planning trusts regardless of where the individual resides.
Step-up in basis Inherited assets in Delaware 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.
Delaware Advance Directives
Delaware law recognizes the following advance directive documents:
Delaware Advance Health Care Directive Delaware uses a combined Advance Health Care Directive that includes both the appointment of a healthcare agent and treatment instructions. Must be signed and witnessed by two adults or notarized.
Delaware POLST — Physician Orders for Life-Sustaining Treatment Delaware 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 nurse practitioner.
Delaware Do Not Resuscitate Order A physician order directing emergency personnel not to perform CPR. Delaware has standardized out-of-hospital DNR protocols.
Delaware Advance Directive Registry Delaware 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 Delaware advance directive forms Free Delaware-specific advance directive forms are available at caringinfo.org and from the Medical Society of Delaware at medicalsocietyofdelaware.org.
Delaware Key Agencies and Resources
Delaware Division of Medicaid and Medical Assistance — DMMA Administers DSHP and DSHP-Plus — Delaware Medicaid — including long term care programs. Website: dhss.delaware.gov/dhss/dmma Delaware ASSIST Portal: assist.dhss.delaware.gov Phone: 1-800-372-2022
Delaware Division of Services for Aging and Adults with Physical Disabilities — DSAAPD Coordinates programs and services for older Delawareans including home care nutrition programs caregiver support and the Delaware SHIP program for free Medicare counseling. Website: dhss.delaware.gov/dhss/dsaapd Phone: 1-800-223-9074 Delaware SHIP — free Medicare counseling: 1-800-336-9500
Delaware Area Agencies on Aging Delaware is served by Area Agencies on Aging in each of its three counties — New Castle Kent and Sussex — that coordinate local services for older adults and caregivers. Eldercare Locator: 1-800-677-1116 or eldercare.acl.gov
Delaware 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: dhss.delaware.gov/dhss/dsaapd/ombudsman.html Phone: 1-800-223-9074
Delaware State Bar Association Lawyer Referral Service Connects Delawareans with attorneys including those who specialize in elder law and estate planning. Website: dsba.org Phone: 1-302-658-5279
Community Legal Aid Society of Delaware — CLASI Provides free civil legal services to low income Delawareans including seniors on issues related to Medicaid benefits housing and elder law. Website: declasi.org Phone: 1-302-575-0660
Delaware Veterans Resources
Delaware Commission of Veterans Affairs — DCVA Provides services and benefits to Delaware veterans and their families including free VA claims assistance and connections to Delaware veterans resources. Website: veterans.delaware.gov Phone: 1-800-344-9900
Delaware Veterans Home Delaware operates a state veterans home providing long term care to eligible veterans and their spouses located in Milford. Website: veterans.delaware.gov/veterans-home
Delaware Senior Property Tax Benefits
Senior School Property Tax Credit Delaware homeowners aged 65 and older who have lived in the state for at least ten years qualify for a credit of up to $500 against school property taxes on their primary residence. Apply through your local county assessor.
New Castle County Senior Property Tax Exemption New Castle County homeowners aged 65 and older who meet income requirements qualify for a 50 percent reduction in county property taxes on their primary residence. Contact the New Castle County Assessment Division for details.
Property Tax Deferral Delaware offers a property tax deferral program for qualifying seniors. Contact your local county tax office for eligibility details and application information.
Disabled Veteran Property Tax Exemption Delaware veterans who are totally and permanently disabled due to a service-connected disability may qualify for a property tax exemption on their primary residence. Contact your county assessment office for details.
Finding Elder Law and Estate Planning Attorneys in Delaware
The following resources can help you find a qualified elder law or estate planning attorney in Delaware:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory by location
- Delaware State Bar Association Lawyer Referral Service — dsba.org — 1-302-658-5279
- Delaware Chapter of NAELA — Delaware has an active NAELA chapter with members throughout the state
- Community Legal Aid Society of Delaware — declasi.org — free legal assistance for income-qualifying seniors — 1-302-575-0660
The information on this page is for general informational purposes only and does not constitute legal or financial advice. Delaware 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: May 2026