Asset spend-down estimator
Tennessee · 2026 limits
Tennessee TennCare still counts most bank and brokerage balances toward a $2,000 applicant resource limit for Institutional Medicaid and CHOICES long-term care. This page runs asset spend-down math for Davidson, Shelby, Knox, and every other Tennessee county using posted 2026 CSRA brackets from the TennCare resource assessment policy.
Enter marital status and countable assets for the person who will file with TennCare Connect or your county Department of Human Services (DHS) office. The form applies the $2,000 single cap and Tennessee CSRA range ($32,532 to $162,660) when a spouse stays home.
Harold in Nashville listed $64,800 across a Regions Bank CD and a First Horizon checking account for his wife Ruth. Davidson County DHS treated the full balance as countable, so the raw gap opened near $62,800 before the community spouse allowance.
Common mistake: Moving Ruth's IRA into Harold's name without a plan. TennCare 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 Tennessee 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 | TennCare Institutional Medicaid |
| Couple resource limit (both applying) | $3,000 | TennCare Institutional Medicaid |
| CSRA minimum (2026) | $32,532 | TennCare resource assessment |
| CSRA maximum (2026) | $162,660 | TennCare resource assessment |
| Look-back period | 60 months | TennCare transfer rules |
| Home equity cap (2026) | $713,000 | Federal minimum |
| Burial fund exclusion | $1,500 | TennCare policy |
| Vehicle exclusion | One vehicle | TennCare policy |
| Nursing facility income cap (2026) | $2,982 / month | 300% federal SSI rate |
| Income spend-down path (LTC) | Qualified Income Trust required above cap | TennCare / DHS |
| Primary program | Institutional Medicaid / CHOICES waiver | TennCare |
The widget subtracts Tennessee 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 $32,532 and capped at $162,660 for 2026 under TennCare rules. The applicant may keep $2,000 on top of that protected share.
Betty and Earl in Memphis held $198,000 between IRAs and a Shelby County credit union account. TennCare counted the IRAs, set Betty's CSRA near $99,000, and still expected Earl to spend or convert the remainder through allowed channels before the nursing facility month billed.
The tool does not apply Tennessee burial fund exclusions or prepaid funeral credits automatically. Add those exempt amounts only if you have already designated separate accounts on your TennCare resource assessment packet.
Common mistake: Entering only the applicant's name on joint accounts. DHS divides jointly owned liquid accounts unless you prove otherwise. Type the full household balance you expect on your TennCare Connect application.
A positive spend-down number is the countable dollars Tennessee still expects you to remove before the first eligibility month. It is not an approval letter. Your local DHS 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 Qualified Income Trust even when assets pass.
Margaret in Knoxville saw $0 asset spend-down but $410 monthly income over the Medicaid Income Cap. Her attorney opened a Miller Trust at a Tennessee bank before TennCare finalized the packet. Asset math alone would have missed that step.
Common mistake: Treating a $0 asset gap as automatic Medicaid approval. TennCare still checks Pre-Admission Evaluation (PAE) forms, citizenship documents, and five-year transfer history.
This page does not score CHOICES waiver functional eligibility, estate recovery waivers, or penalty months from gifts. Tennessee divides the average daily nursing home rate into transfer penalties, and that divisor changes with market rates.
The form does not value a Smoky Mountain cabin, farm acreage in Rutherford County, or a spouse's 401(k) still at work. Each asset class follows a different TennCare worksheet line.
Tennessee also runs an estate recovery program after death for members 55 and older who received nursing facility or certain CHOICES services. Planning conversations belong with a Tennessee elder law attorney before you spend six figures on home repairs.
The calculator does not project patient liability after approval. TennCare 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 $18,000 to an adult child nine months before filing. TennCare can impose penalty months with no coverage even if assets later fall below $2,000. Pay legitimate debt and care invoices instead.
Tennessee administers Medicaid through TennCare, with long-term care applications handled by TennCare Connect and county DHS Family Assistance offices. Nursing facility and CHOICES waiver cases in Davidson, Shelby, and Knox counties follow the same Institutional Medicaid resource test.
Institutional Medicaid covers nursing facility care after a Pre-Admission Evaluation confirms the need for that level of care. CHOICES 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.
Tennessee does not offer a medically needy income spend-down for nursing home cases the way Pennsylvania does. Families above the $2,982 monthly Medicaid Income Cap must assign excess funds to a Qualified Income Trust, also called a Miller Trust, with a Tennessee trustee.
Community spouses may keep the greater of the CSRA calculation or certain income protections under spousal impoverishment rules. Tennessee uses a 2026 CSRA floor of $32,532, which sits above the federal minimum used in some neighboring states.
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 TennCare policy guidance.
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 home cost published by TennCare.
Rural applicants in Johnson City and Chattanooga follow the same resource test as families in Nashville. CHOICES slot availability varies by region, but the $2,000 asset cap does not.
Department of Disability and Aging staff may review functional need for certain waiver paths, while TennCare determines financial eligibility. Keep both agency letters in your file when you appeal a denial.
Common mistake: Assuming Tennessee exempts a second home because a sibling lives there. Non-homestead real estate counts unless occupied by a spouse or dependent child under TennCare rules. Budget property taxes and sale costs before you rely on an appraisal.
| Asset | Tennessee 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 TennCare 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.
TennCare uses a $2,000 countable resource limit for a single Institutional Medicaid applicant and $3,000 when both spouses apply. Certain exempt assets, like a primary home and one car, do not count toward that cap.
Tennessee does not use a medically needy income spend-down for most nursing facility cases. Applicants above the $2,982 monthly Medicaid Income Cap must use a Qualified Income Trust instead of stacking doctor bills.
When one spouse stays home, TennCare protects between $32,532 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.
Tennessee 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 and managed by a Tennessee trustee.
TennCare Connect and county DHS Family Assistance offices collect applications and resource assessment forms. Call 855-259-0701 for help by phone, or use the Tennessee Relay Service at 800-848-0298. Nashville, Memphis, and Knoxville offices handle the highest volume.
Yes for most aged and disabled adults seeking CHOICES Home and Community Based Services. TennCare still applies the $2,000 applicant resource limit and the same 60-month look-back, though functional approval follows a separate Pre-Admission Evaluation path.
This calculator does not decide Tennessee Medicaid eligibility and is not legal or financial advice. Verify figures with Tennessee TennCare / DHS or your county eligibility office before you transfer property or file an application.
