Asset spend-down estimator
Kentucky · 2026 limits
Kentucky CHFS still counts most bank and brokerage balances toward a $2,000 applicant resource limit for nursing facility Medicaid and Michelle P Home and Community Based Services. This page runs asset spend-down math for Louisville, Lexington, Bowling Green, Jefferson County, Fayette County, and every other Kentucky county using posted 2026 federal CSRA brackets from DCBS resource assessment policy.
Enter marital status and countable assets for the person who will file with DCBS through kynect or a local Family Support office. The form applies the $2,000 single cap and federal CSRA range ($29,724 to $162,660) when a spouse stays home.
Patricia in Louisville listed $73,600 across a Republic Bank CD and a PNC checking account for her husband Walter. Jefferson County DCBS treated the full balance as countable, so the raw gap opened near $71,600 before the community spouse allowance.
Common mistake: Moving Walter's IRA into Patricia's name without a plan. DCBS still traces the account through five years of statements. List every account you will hand to your eligibility worker before you shuffle titles.
These figures come from Kentucky agency policy and federal CSRA updates. Call your local eligibility office if your case involves waivers, estate recovery, or managed care plans.
| Rule | Value | Source |
|---|---|---|
| Single applicant resource limit | $2,000 | Kentucky CHFS / DCBS |
| Couple resource limit (both applying) | $3,000 | Kentucky CHFS / DCBS |
| CSRA minimum (2026) | $29,724 | Federal CMS update |
| CSRA maximum (2026) | $162,660 | Federal CMS update |
| Look-back period | 60 months | Kentucky 907 KAR 20:030 |
| Home equity cap (2026) | $713,000 | Federal minimum |
| Burial fund exclusion | $1,500 | Kentucky CHFS policy |
| Vehicle exclusion | One vehicle | Kentucky CHFS policy |
| Nursing facility income cap (2026) | $2,982 / month | 300% federal SSI rate |
| Income spend-down path (LTC) | Qualifying Income Trust required above cap | Kentucky CHFS / DCBS |
| Primary program | Nursing facility / Michelle P waiver | Kentucky DMS |
The widget subtracts Kentucky countable resources from the posted limit for your filing status. Single applicants compare savings against $2,000. Married couples where both seek coverage use the $3,000 couple cap.
When only one spouse applies and the other stays home, the tool splits total assets. Half of the combined balance becomes the Community Spouse Resource Allowance, floored at $29,724 and capped at $162,660 for 2026. The applicant may keep $2,000 on top of that protected share.
George and Helen in Lexington held $224,000 between IRAs and a Central Bank joint account. Fayette County DCBS counted the IRAs, set Helen's CSRA near $112,000, and still expected George to spend or convert the remainder through allowed channels before the nursing facility month billed.
The tool does not apply Kentucky burial fund exclusions or prepaid funeral credits automatically. Add those exempt amounts only if you have already designated separate accounts on your DCBS resource assessment packet.
Common mistake: Entering only the applicant's name on joint accounts. DCBS divides jointly owned liquid accounts unless you prove otherwise. Type the full household balance you expect on your kynect Medicaid application.
A positive spend-down number is the countable dollars Kentucky still expects you to remove before the first eligibility month. It is not an approval letter. Your local DCBS office can reject the file if a vehicle, homestead, or promissory note was misclassified.
A $0 result means your inputs already sit at or below the limit after CSRA math. You may still owe income planning. Nursing facility applicants above $2,982 monthly gross income must route excess income through a Qualifying Income Trust even when assets pass.
Donna in Bowling Green saw $0 asset spend-down but $520 monthly income over the special income standard. Her attorney opened a Miller Trust at a Kentucky bank before DCBS finalized the packet. Asset math alone would have missed that step.
Common mistake: Treating a $0 asset gap as automatic Medicaid approval. CHFS still checks level-of-care forms, citizenship documents, and five-year transfer history.
This page does not score Michelle P waiver functional eligibility, estate recovery waivers, or penalty months from gifts. Kentucky divides the average daily nursing facility rate into transfer penalties, and that divisor changes with market rates.
The form does not value a Bluegrass horse farm, coal royalty interests, or a spouse's 401(k) still at work. Each asset class follows a different DCBS worksheet line.
Kentucky also runs an estate recovery program after death for members 55 and older who received nursing facility or certain waiver services. Planning conversations belong with a Kentucky elder law attorney before you spend six figures on home renovations.
The calculator does not project patient liability after approval. DCBS assigns a monthly share of cost based on gross income minus a personal needs allowance and certain deductions. That number can differ from the spend-down gap shown here.
Common mistake: Gifting $22,000 to an adult child ten months before filing. DCBS can impose penalty months with no coverage even if assets later fall below $2,000. Pay legitimate debt and care invoices instead.
Kentucky administers Medicaid through the Cabinet for Health and Family Services (CHFS), with financial eligibility handled by the Department for Community Based Services (DCBS). Nursing facility and Michelle P waiver applications in Jefferson, Fayette, and Warren counties follow the same long-term care resource test.
Nursing facility Medicaid covers skilled and intermediate care after a level-of-care review confirms the need. Michelle P Home and Community Based Services can serve some adults in their own homes, but asset tests still follow the same $2,000 resource standard for the applicant.
Kentucky does not offer a medically needy income spend-down for nursing facility cases the way Pennsylvania does. Families above the $2,982 monthly special income limit must assign excess funds to a Qualifying Income Trust, also called a Miller Trust, established in Kentucky and approved by DCBS.
Community spouses may keep the greater of the CSRA calculation or certain income protections under spousal impoverishment rules. Kentucky uses the federal home equity cap of $713,000 in 2026 unless a spouse or dependent child still lives in the house.
Burial spaces, one vehicle, and up to $1,500 in a designated burial fund can be excluded if titled correctly. Prepaid funeral contracts follow separate CHFS policy guidance under 907 KAR 20:035.
Look-back reviews cover asset transfers made within 60 months before application. Penalty length equals the uncompensated transfer amount divided by the average monthly nursing facility cost published by Kentucky DMS.
Rural applicants in Owensboro and Paducah follow the same resource test as families in Louisville. Michelle P slot availability varies by region, but the $2,000 asset cap does not.
Department for Medicaid Services staff may review clinical need for certain waiver paths, while DCBS determines financial eligibility. Keep both agency letters in your file when you appeal a denial.
Common mistake: Assuming Kentucky exempts a second home because a cousin lives there. Non-homestead real estate counts unless occupied by a spouse or dependent child under DCBS rules. Budget property taxes and sale costs before you rely on an appraisal.
| Asset | Kentucky rule |
|---|---|
| Primary home | Exempt if applicant, spouse, or dependent child lives there or equity is below $713,000 (2026) |
| One vehicle | Exempt regardless of value for applicant or community spouse transportation |
| Household goods | Exempt personal property in the home |
| Burial fund | Up to $1,500 in a separately designated account |
| Prepaid funeral | Irrevocable funeral contract may be exempt with DCBS documentation |
| Term life insurance | Exempt if face value is $1,500 or less |
| IRA / 401(k) | Countable unless receiving required minimum distributions treated as income |
| Second home or land | Countable; must be sold or spent down unless occupied by exempt relative |
Read our pillar guides for look-back rules, Miller Trusts, spousal allowances, and estate recovery. Start withwhat is Medicaid spend down or theasset limits guide if you are new to the topic.
These supporting posts cover countable assets, application steps, and spend-down strategies that pair with this calculator.
Asset caps differ sharply by state. California reinstated a $130,000 single limit in January 2026. Oklahoma and Louisiana still follow the $2,000 federal floor for many cases.
Kentucky CHFS uses a $2,000 countable resource limit for a single nursing facility applicant and $3,000 when both spouses apply. Certain exempt assets, like a primary home and one car, do not count toward that cap.
Kentucky does not use a medically needy income spend-down for most nursing facility cases. Applicants above the $2,982 monthly special income limit must use a Qualifying Income Trust instead of stacking doctor bills.
When one spouse stays home, DCBS protects between $29,724 and $162,660 of combined countable assets for the community spouse in 2026. The applicant may keep $2,000 in addition to that protected share.
Kentucky reviews asset transfers made within 60 months before your application date. Gifts, below-market sales, and some trust funding can trigger penalty months without coverage.
Nursing facility applicants with gross income above $2,982 per month in 2026 generally must deposit excess income into a Miller Trust each month. The trust must be irrevocable, established in Kentucky, and approved by DCBS before payments begin.
DCBS Family Support offices and kynect collect applications and resource assessment forms. Call (855) 306-8959 for help by phone. Louisville, Lexington, and Bowling Green offices handle the highest volume in the state.
Yes for most aged and disabled adults seeking Michelle P Home and Community Based Services. DCBS still applies the $2,000 applicant resource limit and the same 60-month look-back, though functional approval follows a separate level-of-care review.
This calculator does not decide Kentucky Medicaid eligibility and is not legal or financial advice. Verify figures with Kentucky CHFS / DCBS or your county eligibility office before you transfer property or file an application.
