This page provides a plain-English summary of key elder care and estate planning information specific to Minnesota residents. It covers Minnesota Medicaid limits, estate tax rules, advance directive information, and links to important Minnesota 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.
Minnesota Medicaid — 2026 Eligibility Limits for Long Term Care
Minnesota’s Medicaid program is called Medical Assistance — MA — and is administered by the Minnesota Department of Human Services. Minnesota has a uniquely complex long term care Medicaid structure with significantly different rules than most other states. Minnesota expanded Medicaid under the Affordable Care Act in 2014.
Important — Minnesota uses a much lower income limit for nursing home Medicaid Minnesota is one of only a handful of states that uses the Federal Poverty Level — FPL — rather than 300 percent of the Federal Benefit Rate as the income limit for nursing home Medicaid. The income limit for a single nursing home Medicaid applicant in Minnesota is $1,305 per month — effective July 2025 through June 2026. This is significantly lower than the $2,982 limit used by most other states. Applicants whose income exceeds this limit must spend down — meaning they apply excess income toward their medical costs — to qualify. Minnesota does not use Qualified Income Trusts — Miller Trusts — like most other states. Instead it uses a medically needy spend-down pathway.
Asset limit — single applicant — also stricter than most states A single applicant must have $3,000 or less in countable assets — slightly higher than the $2,000 standard used by most states but lower than some others. 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 are counted as countable assets in Minnesota.
Married couples — strict combined asset limit Minnesota has unusually strict asset limits for married couples applying for nursing home Medicaid. The combined asset limit for a couple when both spouses apply is $6,000 — far below the limits in most states. When only one spouse applies the community spouse may retain up to $162,660 under the Community Spouse Resource Allowance. The applicant spouse retains $3,000. Advance planning is especially important for Minnesota married couples given these strict limits.
Home and community based care — Elderly Waiver and CDCS Minnesota’s primary HCBS program for seniors is the Elderly Waiver — EW — which provides home and community based services for people who need nursing facility level care but want to remain at home. The income limit for the Elderly Waiver uses the FPL — $1,305 per month for a single applicant — and the asset limit is $3,000. Minnesota also offers the Consumer Directed Community Supports — CDCS — program allowing participants to direct their own care. CDCS budget caps increased 6.013 percent effective January 1 2026.
Alternative Care Program Minnesota offers a unique state-funded — not Medicaid — program called Alternative Care — AC — for residents aged 65 and older who need nursing facility level care but do not financially qualify for Medical Assistance. AC provides home and community based services while individuals work toward establishing Medical Assistance eligibility. AC requires cost-sharing and limits monthly care costs to 75 percent of the equivalent Elderly Waiver limit.
Monthly Maintenance Needs Allowance The minimum Monthly Maintenance Needs Allowance for the community spouse is $2,645 per month in 2026. The maximum is $4,066.50 per month for community spouses with high housing costs.
Personal needs allowance Minnesota nursing home Medical Assistance recipients are allowed to keep $132 per month as a personal needs allowance — one of the higher personal needs allowances in the country. The remainder of income is applied toward the cost of care.
Look-back period and divestment penalty Minnesota has a 60-month — five year — look-back period for nursing home Medicaid and Elderly 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 Minnesota is $11,653 per month — the statewide average monthly payment rate for skilled nursing facility care.
Estate recovery Minnesota requires Medicaid estate recovery for recipients aged 55 and older. After a Medical Assistance 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 Minnesota Medical Assistance Applications can be submitted online through MNsure at mnsure.org, by contacting your local county or tribal human services agency, or by calling the Senior LinkAge Line at 1-800-333-2433 for long term care program assistance.
Minnesota Medicaid administering agency Minnesota Department of Human Services — mn.gov/dhs
Minnesota Estate Tax — 2026
Minnesota is one of 12 states that imposes its own state estate tax. This makes Minnesota estate planning significantly more complex than in most other states and requires careful planning especially for married couples.
Minnesota state estate tax — $3 million exemption Minnesota imposes a state estate tax on estates exceeding $3,000,000 per individual in 2026. The exemption has remained at $3 million since 2020 and is not indexed for inflation. Minnesota’s estate tax rates are graduated ranging from 13 percent to 16 percent on amounts above the exemption.
No portability in Minnesota — critical planning consideration Unlike the federal estate tax Minnesota’s estate tax exemption is not portable between spouses. This means each spouse has a separate $3,000,000 exemption and without proper planning a married couple could lose one spouse’s exemption entirely. This is one of the most important estate planning considerations for Minnesota married couples. Trusts and other planning strategies are commonly used to preserve both spouses’ exemptions.
Three-year gift clawback rule Minnesota has an unusual rule that subjects certain gifts made within three years of death to the state estate tax. Specifically gifts that exceed the federal annual gift tax exclusion — $19,000 per recipient in 2026 — made within three years of death are added back to the estate for Minnesota estate tax purposes. This prevents last-minute transfers to avoid the estate tax.
Qualified small business and farm exemption Minnesota allows an additional exemption of up to $2,000,000 for certain qualified small business and farm property. This means eligible business owners and farmers may be able to exempt up to $5,000,000 from Minnesota estate tax. Specific requirements must be met and the property must remain in qualified use for a period after the transfer.
No Minnesota inheritance tax Minnesota does not impose an inheritance tax. Beneficiaries who receive assets from a Minnesota decedent owe no Minnesota inheritance tax regardless of the size of the inheritance.
Federal estate tax Minnesota residents may also 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 at the federal level. Because the Minnesota exemption of $3 million is far below the federal exemption of $15 million many Minnesota estates owe state estate tax but no federal estate tax — making Minnesota-specific estate planning essential.
No Minnesota gift tax Minnesota does not impose a state gift tax. However the three-year clawback rule described above means that large gifts made shortly before death may still be subject to Minnesota estate tax.
No Minnesota gift tax plus clawback The federal gift tax annual exclusion is $19,000 per recipient in 2026. Gifts within this annual exclusion are not subject to the Minnesota three-year clawback rule. Lifetime giving within the annual exclusion is therefore an effective strategy for reducing the Minnesota taxable estate.
Minnesota Advance Directives
Minnesota law recognizes the following advance directive documents:
Minnesota Health Care Directive Minnesota uses a single combined Health Care Directive that includes both the appointment of a health care agent and treatment instructions — similar to a combined healthcare proxy and living will. Must be signed and witnessed by two adults or notarized.
Minnesota POLST — Physician Orders for Life-Sustaining Treatment Minnesota 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.
Minnesota Do Not Resuscitate Order — DNR A physician order directing emergency personnel not to perform CPR. Minnesota has standardized out-of-hospital DNR protocols.
Minnesota Advance Directive Registry Minnesota does not maintain a statewide advance directive registry. Copies of your directive should be given to your health care agent physician and any hospital or care facility where you receive care.
Free Minnesota advance directive forms Free Minnesota-specific advance directive forms are available at caringinfo.org and from the Minnesota Medical Association at mnmed.org.
Minnesota Key Agencies and Resources
Minnesota Department of Human Services — DHS Administers Medical Assistance — Minnesota Medicaid — including long term care programs. Website: mn.gov/dhs Phone: 1-800-657-3739
Senior LinkAge Line Minnesota’s free statewide information and assistance service for older adults and caregivers — a key entry point for long term care and Medicaid information. Website: mn.gov/senior-linkage-line Phone: 1-800-333-2433
Minnesota Board on Aging Coordinates programs and services for older Minnesotans including the Minnesota SHIP program for free Medicare counseling. Website: mn.gov/board-on-aging Phone: 1-800-333-2433 Minnesota SHIP — free Medicare counseling: 1-800-333-2433
Minnesota Area Agencies on Aging Minnesota is served by 14 Area Agencies on Aging that coordinate local services for older adults and caregivers. Eldercare Locator: 1-800-677-1116 or eldercare.acl.gov
Minnesota Office of Ombudsman for Long Term Care Advocates for the rights of residents of nursing homes and assisted living facilities. Investigates complaints and helps resolve problems free of charge. Website: mn.gov/ombudsman-ltc Phone: 1-651-431-2555 or 1-800-657-3591
Minnesota State Bar Association Lawyer Referral Service Connects Minnesotans with attorneys including those who specialize in elder law and estate planning. Website: mnbar.org Phone: 1-800-292-4152
Mid-Minnesota Legal Aid Provides free civil legal services to low income Minnesotans including seniors on issues related to Medicaid benefits housing and elder law. Website: mylegalaid.org Phone: 1-888-575-2954
Minnesota Veterans Resources
Minnesota Department of Veterans Affairs — MDVA Provides services and benefits to Minnesota veterans and their families including free VA claims assistance and connections to Minnesota veterans resources. Website: mn.gov/mdva Phone: 1-888-546-5838
Minnesota State Veterans Homes Minnesota operates veterans homes providing long term care to eligible veterans and their spouses. Facilities are located in Fergus Falls Hastings Luverne Minneapolis and Silver Bay. Website: mn.gov/mdva/veterans-homes
Minnesota Senior Property Tax Benefits
Senior Citizens Property Tax Deferral Program Minnesota homeowners aged 65 and older with household income of $60,000 or less may defer a portion of their property taxes. Deferred taxes accrue interest at 3 percent annually and become a lien on the property payable when the home is sold transferred or the owner moves. Apply through the Minnesota Department of Revenue by July 1.
Homestead Market Value Exclusion Minnesota homeowners who occupy their home as a primary residence qualify for a homestead market value exclusion that reduces the taxable market value of the home for property tax purposes. This applies to all homeowners regardless of age and provides meaningful property tax relief.
Property Tax Refund — Renter and Homeowner Minnesota offers property tax refund programs for homeowners and renters including seniors who meet income requirements. File Schedule M1PR with your Minnesota income tax return or as a standalone filing.
Disabled Veteran Property Tax Exclusion Minnesota veterans with a service-connected disability of 70 percent or more may qualify for a property tax exclusion on their primary residence. The exclusion increases with higher disability ratings and is 100 percent for veterans rated totally and permanently disabled. Apply through your county assessor.
Finding Elder Law and Estate Planning Attorneys in Minnesota
The following resources can help you find a qualified elder law or estate planning attorney in Minnesota:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory by location
- Minnesota State Bar Association Lawyer Referral Service — mnbar.org — 1-800-292-4152
- Minnesota Chapter of NAELA — Minnesota has an active NAELA chapter with members throughout the state
- Mid-Minnesota Legal Aid — mylegalaid.org — free legal assistance for income-qualifying seniors
- Senior LinkAge Line — 1-800-333-2433 — can connect seniors with legal resources statewide
The information on this page is for general informational purposes only and does not constitute legal or financial advice. Minnesota Medical Assistance rules estate 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