Many Kansas seniors are surprised to learn that qualifying for Medicaid long-term care assistance means owning less than $2,000 in countable assets. For most families, this leads to tough decisions, especially when their home—their largest investment—is at risk.

Fortunately, Kansas residents have strategies available to protect their homes and assets. While Medicaid allows certain exemptions, it can also place liens on property and recover costs from estates after death through the Medicaid Estate Recovery Program (MERP). In 2025, Kansas seniors can exempt up to $730,000 in home equity and still qualify for Medicaid—but that exemption doesn’t guarantee protection after passing.

With proper planning, you can meet Medicaid eligibility requirements and preserve your legacy. Legal tools like asset protection trusts and strategic spend-down methods can help safeguard what you've worked so hard to build.

Navigating Kansas Medicaid Eligibility for Long-Term Care

Understanding Medicaid (KanCare) eligibility requirements is essential for seniors and families who wish to protect their homes and savings.

Income Limits in 2025

Kansas does not impose a strict income cap for nursing home Medicaid, but nearly all of an applicant’s income must go toward care expenses. Seniors are allowed to retain just $62 per month as a personal needs allowance. Medicare premiums are also excluded if the individual is dual-eligible.

Special rules apply to married couples. The healthy spouse—known as the community spouse—may keep a Monthly Maintenance Needs Allowance of at least $2,555. If household expenses exceed $310.50, additional income may be allowed, up to a maximum of $3,948 monthly. Income from the institutionalized spouse may be shifted to help the community spouse meet minimum allowances.

Asset Limits and What Counts

In 2025, single Medicaid applicants in Kansas may own up to $2,000 in countable assets. Married couples applying together are limited to $3,000. If only one spouse applies, the community spouse may retain up to $157,920 in countable assets, while the applicant is still limited to $2,000.

Countable assets include:

• Cash and bank accounts

• Investments and brokerage accounts

• Retirement accounts of the applicant (e.g., IRAs, 401(k)s)

• Real estate beyond your primary residence

• Additional vehicles beyond one

Exempt assets include:

• Your primary residence (equity limit: $730,000)

• Retirement accounts of the community spouse (e.g., IRAs, 401(k)s)

• One car

• Personal property and household furnishings

• Prepaid funeral arrangements (up to $11,670) and Burial plots

Medical Necessity Criteria

Eligibility isn’t just about finances—applicants must demonstrate medical need for long-term care. Kansas uses a Nursing Facility Level of Care (NFLOC) standard, evaluating daily living activities like mobility, bathing, dressing, eating, and toileting. Memory function and ability to manage household tasks are also considered.

This medical assessment plays a critical role in determining whether Medicaid assistance is warranted.

When Medicaid Puts Your Home at Risk

Receiving Medicaid doesn't eliminate future risks. Kansas has the right to recoup costs after the recipient's death, including through the home.

How Estate Recovery Works

All 50 states, including Kansas, are federally required to operate an estate recovery program. Kansas targets beneficiaries over age 55 who received long-term care benefits, attempting to recover those costs after death. The home is often the most valuable remaining asset.

Think of Medicaid not as a benefit, but a loan. The state seeks repayment—usually from the estate.

Assets Subject to Recovery

Although the home is exempt while the recipient is alive, it may be claimed after death unless it qualifies for an exception. Kansas uses expanded recovery, which allows the state to pursue:

• Jointly owned accounts

• Property with rights of survivorship

• Transfer-on-death (TOD) deeds

• Life insurance policies

• Revocable trusts and annuities

Liens may also be placed on property if the recipient received institutional care for six months or more with little chance of returning home.

Understanding the 60-Month Look-Back Period

Kansas enforces a strict five-year look-back on asset transfers. Any assets sold or gifted for less than fair market value during this time may trigger penalties, delaying eligibility. There's no limit to the penalty period—making proactive planning essential.

Exceptions exist, including transfers to:

• A surviving spouse

• A child under 21 or a blind/disabled adult child

• A “caretaker child” who lived with and cared for the applicant for at least two years

• A sibling with an equity interest in the home who lived there for at least one year

Legal Strategies to Protect Your Home

There are legitimate, legal ways to shield your property from Medicaid estate recovery. These methods can preserve both your residence and your family’s financial future.

Using a Medicaid Asset Protection Trust (MAPT)

A MAPT allows you to transfer ownership of your home and other assets to a trust managed by someone you choose. The trust must be established at least five years before applying for Medicaid to avoid penalties.

Benefits of a MAPT:

• Converts countable assets into exempt assets

• Protects your home from estate recovery

• Allows you to receive income from trust assets

• Enables continued residence in your home

It’s important to note that you relinquish control over trust assets, so professional guidance is essential.

Transferring Property to Family Members

Direct transfers to relatives can be risky without planning, as they may violate the look-back rule. However, penalty-free transfers are permitted to:

• A spouse

• A child under 21 or with disabilities

• A caretaker child

• A sibling with an equity interest

Legal advice ensures these transfers are executed safely and strategically.

Smart Spend-Down Strategies for Kansas Seniors

If your assets exceed Medicaid limits, spending down is a lawful way to qualify while improving your quality of life.

Make Home Improvements

Investing in your exempt residence is a strategic way to convert countable resources. Consider:

• Installing mobility aids (ramps, lifts)

• Creating first-floor living spaces

• Addressing essential repairs (roof, plumbing, safety)

These upgrades boost property value and enhance comfort for your community spouse.

Pay Off Debts

Reducing liabilities is another approved strategy. Focus on:

• Paying off your mortgage

• Eliminating credit card balances

• Settling medical bills or personal loans

This not only reduces your assets but strengthens your spouse’s financial position.

Purchase Exempt Assets

Excess resources can be spent on assets that Medicaid doesn't count, such as:

• A new vehicle

• Personal belongings or household goods

• Medical equipment

• Irrevocable funeral and burial plans

Married couples also benefit from higher asset allowances for the community spouse, ranging from $31,584 to $157,920 depending on circumstances.

Convert Excess Assets to Income

If resources still exceed limits after spend-down tactics, converting assets into a stream of income for the community spouse may be an option. This method preserves value while accelerating Medicaid eligibility.

Careful Medicaid planning can preserve both your care and your legacy. Although Kansas’s $2,000 asset limit may feel restrictive, a variety of legal tools are available to help you navigate the system while protecting your most important assets.

Whether through trusts, spend-down strategies, or tailored legal transfers, thoughtful planning provides a pathway to peace of mind. For the best results, consult with an elder law attorney familiar with Kansas Medicaid regulations to create a personalized plan that fits your family's needs and ensures your care is covered without putting your home at risk.