ALTCS Asset Limits in Arizona: What Families Need to Know

For 2026, the ALTCS countable resource limit for a single applicant is $2,000. This is the maximum value of countable assets an unmarried applicant may own and still meet the resource eligibility test.

For a married applicant (where one spouse applies for ALTCS and the other remains in the community), the rules are more protective and significantly more complex — see the married-couple section below.

The $2,000 individual limit is a long-standing federal Medicaid floor and has remained at this level for many years. However, always confirm the current threshold directly with AHCCCS or a qualified elder law attorney, as policy can change.

Source: Arizona AHCCCS Eligibility Standards Desk Aid (DE-828), verified May 2026. SeniorVue is a senior care guidance resource — not AHCCCS, a Medicaid advisor, legal advisor, or financial advisor.

Not all assets count toward the ALTCS resource limit. AHCCCS distinguishes between countable resources (which are evaluated against the limit) and exempt resources (which are excluded from the calculation).

Countable resources typically include:

• Checking and savings account balances
• CDs (certificates of deposit)
• Money market accounts
• Stocks, bonds, and mutual funds
• IRAs, 401(k)s, and most retirement accounts (when the owner is not taking Required Minimum Distributions — rules vary)
• Second homes or real estate not used as the primary residence
• Non-primary vehicles
• Cash value of life insurance above applicable thresholds
• Certain annuities (depending on structure and purchase date)

Resources that AHCCCS may not count include:

• The primary home (subject to conditions — see below)
• One vehicle of any value used for transportation
• Personal belongings and household furnishings
• Burial-related exclusions (subject to limits — see below)
• Term life insurance (no cash value)
• Wedding and engagement rings

This list is not exhaustive. The treatment of specific assets — particularly retirement accounts, annuities, and certain trusts — is highly fact-specific. A qualified elder law attorney can evaluate the full picture.

The applicant's primary residence may be treated as an exempt resource in some ALTCS situations — but how AHCCCS evaluates the home depends on multiple factors:

• Whether the applicant, their spouse, a minor child, a blind child, or a disabled child lives in the home
• Whether the applicant has a stated intent to return home
• The home's equity value and how AHCCCS applies the applicable home equity limit
• How the home is titled or held (e.g., in a trust)
• Whether a community spouse or qualifying dependent continues to occupy the home

Home equity, ownership structure, trust status, spouse or dependent occupancy, and intent-to-return rules can all affect how AHCCCS reviews the home. Families should verify the current home equity rules directly with AHCCCS or a qualified elder law attorney before drawing conclusions about their specific situation.

Estate recovery: Even when the home is treated as exempt during the ALTCS eligibility review, Arizona has an estate recovery program. AHCCCS may seek reimbursement from the applicant's estate — which can include the home — after the ALTCS member's death. Families with significant home equity should discuss this with a qualified elder law attorney before applying.

SeniorVue does not provide legal or financial advice. The above is general educational information only.

AHCCCS may not count the following toward the resource limit:

• One vehicle of any value used for transportation of the applicant or household members. Additional vehicles may be reviewed as resources.
• Household furnishings and personal belongings — clothing, furniture, and similar items used in the home are generally not counted.

The specifics of how vehicles are treated — particularly when a second vehicle is needed for a community spouse's transportation — can vary by situation. Professional guidance is helpful when any uncertainty exists.

Arizona AHCCCS allows certain burial-related assets to be excluded from the resource count. Per the AHCCCS Eligibility Standards Desk Aid (DE-828), these generally include:

• A pre-paid irrevocable burial contract (funeral, burial, or cremation contract that cannot be cashed out) — generally fully exempt
• A burial space (grave site, mausoleum, urn, etc.) — generally exempt
• A designated burial amount of up to $1,500 per applicant, set aside in a separate account specifically for burial expenses

The $1,500 designated burial amount is sourced from the Arizona AHCCCS Eligibility Standards Desk Aid (DE-828). Always confirm the current figure with AHCCCS, as policy details can change.

The treatment of life insurance policies earmarked for burial, jointly held burial accounts, and similar arrangements depends on how they are structured. A qualified elder law professional can advise on the best approach for a specific situation.

SeniorVue does not provide legal or financial advice. The above is general educational information only.

When one spouse applies for ALTCS and the other remains in the community (the community spouse), federal Medicaid law provides significant financial protections to prevent the at-home spouse from becoming impoverished.

Community Spouse Resource Allowance (CSRA): The community spouse is allowed to keep a share of the couple's combined countable resources — called the Community Spouse Resource Allowance. Per the Arizona AHCCCS Eligibility Standards Desk Aid, the 2026 CSRA figures are:

• Minimum CSRA: $32,532
• Maximum CSRA: $162,660

The CSRA is calculated based on half of the couple's total countable resources at the time of the ALTCS snapshot (the start of the continuous period of institutionalization), subject to the minimum and maximum limits above.

After the CSRA is set aside for the community spouse, the applicant must spend down remaining countable resources to the $2,000 individual limit before ALTCS approval.

Source: Arizona AHCCCS Eligibility Standards Desk Aid, verified May 2026. CSRA figures are updated annually — confirm current figures with AHCCCS or a qualified elder law attorney before relying on them.

Married-couple ALTCS cases also involve income protections (the MMMNA — see ALTCS Income Limits →). For 2025–2026, the Monthly Spousal Need (MMMNA floor) is $2,644/month, with a maximum MMMNA of $4,066.50/month. These cases can be significantly more complex than single-applicant cases, and the specifics are determined by AHCCCS on a case-by-case basis.

ALTCS — like all long-term care Medicaid programs — has a look-back period. For institutional ALTCS (nursing facility level of care), this is generally 60 months (5 years) prior to the date of application.

During the look-back review, AHCCCS examines whether the applicant (or their spouse) transferred assets for less than fair market value. If such transfers are found, AHCCCS may impose a penalty period — a period of ALTCS ineligibility during which the applicant is expected to use the transferred resources to pay for their own care.

Common examples that can trigger a penalty:

• Gifting money or property to children or grandchildren
• Transferring ownership of the home without fair compensation
• Adding a family member to a bank account and then transferring funds out
• Selling assets below fair market value

Important: Not all transfers trigger a penalty. There are specific exemptions — including transfers to a spouse, to a disabled child, and to a sibling with an equity interest in the home who lived there for at least one year. These exceptions are narrow and must be properly documented.

If any significant asset transfers have occurred within the past five years, families should consult a qualified elder law attorney before submitting an ALTCS application. Submitting with undisclosed transfers can create serious complications.

SeniorVue is not a legal advisor. The above is general educational information only. ALTCS look-back rules are complex and the consequences of improper transfers can be significant.

Meeting the asset limit is necessary but not sufficient for ALTCS approval. An applicant must also meet:

• Arizona residency requirements
• Citizenship or immigration status requirements
• Income eligibility — gross monthly income at or below $2,982/month for 2026, or eligibility established via a Qualified Income Trust (see ALTCS Income Limits →)
• Medical/functional eligibility — a nursing facility level of care, as assessed by AHCCCS

All four criteria must be met simultaneously. Families exploring ALTCS are encouraged to review the full eligibility picture at ALTCS Eligibility Requirements →

Asset planning for ALTCS is one of the most complex areas of elder law. If any of the following apply, we strongly encourage consulting a qualified elder law attorney familiar with Arizona Medicaid rules before taking any financial action:

• The applicant or couple has significant assets (including retirement accounts, real estate, or investments)
• Gifts or transfers have been made in the past five years
• There is a community spouse
• The family is considering a Qualified Income Trust (QIT) or other planning tool (see ALTCS Trusts →)
• There is uncertainty about how specific assets will be treated by AHCCCS

SeniorVue is a senior care guidance resource — not AHCCCS, a Medicaid advisor, legal advisor, financial advisor, or approval service. We help families understand the care landscape and connect with experienced local professionals. Get free guidance →

You can also contact AHCCCS directly at azahcccs.gov for current figures and official program information.