---
title: "Long-Term Care Funding in Indiana | Funding LTC Marketplace"
url: https://fundingltcmarketplace.com/states/indiana/
description: "Indiana Medicaid long-term care: income cap, Miller Trust rules, transfer-on-death deed risk, and expanded estate recovery explained plainly."
author: George A. Mellendorf, CLTC, LTCP (Central States Insurance Services, Inc.)
publisher: Funding LTC Marketplace
note: Educational content; not legal, tax or financial advice. Markdown copy of the HTML page at the URL above.
---
State Funding Guide

# Long-Term Care Funding in Indiana

Indiana takes a different route than a lot of states when it comes to funding long-term care. Because it's an income-cap state, a nursing-home or waiver applicant whose income runs over the monthly ceiling can't just spend down the excess — they need a Qualified Income Trust, commonly called a Miller Trust, to become eligible at all.

Indiana also lets homeowners record a transfer-on-death deed, but that convenience comes with a catch: the state's Medicaid estate-recovery definition reaches well beyond the probate estate, pulling in certain nonprobate transfers too. That combination — a hard income cap plus expanded recovery — makes title and trust planning unusually important here, and it's exactly what this cluster of pages is built to walk through.

## Why Indiana is different

- **A hard income cap, not a spend-down.** Indiana's 2026 institutional and waiver income cap sits at $2,982 per month; anyone above that figure needs a Qualified Income Trust (Miller Trust) rather than a conventional medically needy spend-down.
- **PathWays for Aging replaced the old waiver system.** Indiana PathWays for Aging is now the statewide managed long-term-services-and-supports program for Medicaid members age 60 and older, covering both nursing-facility care and home- and community-based services.
- **Transfer-on-death deeds don't dodge recovery.** Indiana authorizes a recorded TOD deed for real property, but the state's statutory definition of "estate" for Medicaid recovery purposes includes certain survivorship interests and nonprobate transfers — so a TOD deed is a probate-avoidance tool, not automatically a recovery shield.
- **A documented 90-day hardship deadline.** Indiana's undue-hardship waiver process for estate recovery comes with a specific 90-day application deadline, which families need to track closely after a death.
- **An active, open Partnership program.** Indiana's Long Term Care Insurance Program is a live partnership between the state and private insurers — both traditional and Partnership policies are sold here, and the state itself doesn't sell the insurance.

## Indiana at a glance

- Individual asset limit: $2,000
- Couple asset limit when both apply: $3,000
- Institutional/waiver income cap: $2,982/month
- Home-equity limit: $752,000
- Nursing-home personal-needs allowance: $52/month
- Look-back period: 60 months

## Which situation matches yours?

| If this is your situation | Start here |
|---|---|
| Care Needed NowA hospital discharge is being planned, a facility decision is imminent, or home care has already started. | [Indiana Medicaid Look-Back Period](https://fundingltcmarketplace.com/states/indiana/medicaid-look-back-period/)[Indiana VA Aid & Attendance](https://fundingltcmarketplace.com/states/indiana/va-aid-attendance/) |
| Care Within 1-3 YearsMemory changes, a recent fall, or a new diagnosis have made the timeline real, but care isn't needed today. | [Indiana VA Aid & Attendance](https://fundingltcmarketplace.com/states/indiana/va-aid-attendance/)[Indiana Long-Term Care Planning](https://fundingltcmarketplace.com/states/indiana/long-term-care-planning/) |
| Planning AheadNo diagnosis, no crisis, no urgency — just the recognition that long-term care is a when, not an if, for most people eventually. | Indiana Long-Term Care Insurance[Indiana Long-Term Care Planning](https://fundingltcmarketplace.com/states/indiana/long-term-care-planning/) |
| Veteran (or surviving spouse) of wartime serviceAdds a federal pension benefit on top of whatever the Situation and State rows point to. | [Indiana VA Aid & Attendance](https://fundingltcmarketplace.com/states/indiana/va-aid-attendance/) |
| Owns significant home equityThe home is usually Medicaid-exempt during life but affects estate recovery and private-pay runway. | [Indiana Transfer-on-Death Deed](https://fundingltcmarketplace.com/states/indiana/transfer-on-death-deed/)[Indiana Medicaid Long-Term Care](https://fundingltcmarketplace.com/states/indiana/medicaid-long-term-care/) |
| Already has LTC insurance or a hybrid life/LTC policy in forceThe existing policy is usually the first dollar spent; other pillars become supplemental once benefits are exhausted or if a gap remains. | Indiana Long-Term Care Insurance[Indiana Medicaid Long-Term Care](https://fundingltcmarketplace.com/states/indiana/medicaid-long-term-care/) |

## The 10 funding pillars in Indiana

Every pillar below has its own dedicated Indiana page with the current rules, dollar figures, and what to do next.

- [Indiana Medicaid Long-Term Care](https://fundingltcmarketplace.com/states/indiana/medicaid-long-term-care/) (Medicaid Program): How FSSA administers Indiana Medicaid long-term services through PathWays for Aging, nursing facilities, and HCBS waivers.

- [Indiana Medicaid Asset Limits](https://fundingltcmarketplace.com/states/indiana/medicaid-asset-limits/) (Financial Eligibility): Indiana's 2026 resource limits, income cap, home-equity bar, and community-spouse protections for long-term-care Medicaid.

- [Indiana Medicaid Look-Back Period](https://fundingltcmarketplace.com/states/indiana/medicaid-look-back-period/) (Look-Back & Penalties): Indiana's five-year transfer review and the need to verify the currently published facility-rate divisor before calculating a penalty.

- [Indiana Transfer-on-Death Deed](https://fundingltcmarketplace.com/states/indiana/transfer-on-death-deed/) (Asset Protection Tool): Indiana authorizes recorded transfer-on-death deeds, but nonprobate property remains within the state's broad Medicaid estate-recovery definition.

- [Indiana Medicaid Estate Recovery](https://fundingltcmarketplace.com/states/indiana/medicaid-estate-recovery/) (Estate Recovery): Indiana's estate definition extends beyond probate and its undue-hardship rule has a documented 90-day application deadline.

- [Indiana Nursing Home Medicaid](https://fundingltcmarketplace.com/states/indiana/nursing-home-medicaid/) (Nursing Home Coverage): Indiana nursing-facility Medicaid uses a $52 personal-needs allowance and requires PASRR plus a qualifying level-of-care determination.

- [Indiana Home Care Medicaid](https://fundingltcmarketplace.com/states/indiana/home-care-medicaid/) (Home & Community Care): PathWays for Aging supplies managed HCBS for people 60 and older, while federally capped waiver capacity can produce a waiting list.

- [Indiana Long-Term Care Planning](https://fundingltcmarketplace.com/states/indiana/long-term-care-planning/) (Planning Ahead): Indiana planning combines a hard income cap, QIT administration, a five-year transfer review, and title planning under expanded recovery.

- [Indiana VA Aid & Attendance](https://fundingltcmarketplace.com/states/indiana/va-aid-attendance/) (VA Benefits): Indiana veterans can assess VA pension add-ons, the Indiana Veterans' Home, state property-tax relief, and Indiana Medicaid treatment together.

- [Indiana Long-Term Care Insurance](https://fundingltcmarketplace.com/states/indiana/long-term-care-insurance/) (LTC Insurance): Indiana's active Partnership program offers qualifying policies and Medicaid asset protection features through private insurers.

Participates in the State Long-Term Care Partnership Program.

## Sources and official resources

- [Indiana Medicaid: Eligibility Guide](https://www.in.gov/medicaid/members/apply-for-medicaid/eligibility-guide/)
- [Indiana Department of Insurance: Consumer Information](https://www.in.gov/idoi/consumer-services/information/)
- [Indiana Long Term Care Insurance Program](https://www.in.gov/iltcp/)
- [Indiana Long Term Care Insurance Program: FAQs](https://www.in.gov/iltcp/faqs/)
- [CMS: 2026 SSI and Spousal Impoverishment Standards](https://www.medicaid.gov/federal-policy-guidance/downloads/cib04272026.pdf)
- [U.S. Code: 42 U.S.C. § 1396p (liens, estate recovery, transfers of assets, Partnership disregard)](https://www.law.cornell.edu/uscode/text/42/1396p)

Rules and figures change. Confirm current details with the agency before you act.