Life & viatical settlements in Texas
State-specific rules, Medicaid asset limits, rescission periods, and licensing information for Texas residents.
Texas at a glance
- StatuteTex. Ins. Code §1111A
- Rescission window15 days
- Medicaid asset limit$2,000
- RegulatorTexas Dept. of Insurance
- Licensed providersMultiple
How life settlements work in Texas
Life and viatical settlements in Texas are regulated under Tex. Ins. Code §1111A. The Texas Department of Insurance licenses both viatical providers and brokers, and requires written disclosures, a 15 days rescission period, and standardized contract forms.
For cancer patients in Texas, the most common path is a viatical settlement under IRS §101(g), where proceeds are tax-free at the federal level if you’re certified as terminally or chronically ill. Texas conforms to federal tax treatment for these settlements.
Medicaid impact in Texas
Texas’s Medicaid asset limit is currently $2,000 for individuals (2026). A lump-sum settlement that exceeds this limit can disqualify you from coverage. Specialized trust structures (special needs trusts, pooled trusts) can preserve eligibility but must be established before proceeds arrive.
This is the single most important planning step for Texas patients receiving a settlement. We’ll connect you with a Texas elder law attorney if you’d like guidance.
What’s different about Texas
- Rescission period: 15 days from contract signing to change your mind
- Required disclosures: Buyers must provide written disclosures including alternatives (loan, surrender, ADB rider)
- Privacy: Medical and policy information is HIPAA-protected throughout
- Tax treatment: Texas follows federal §101(g) for viatical proceeds
Major Texas cities we serve
Statewide. Our licensed specialists work with policies throughout Texas, with no in-person meetings required. Documentation, signatures, and notarization can all happen remotely.
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