How can I protect my Home if I am on Medi-Cal? Part 2 – the Solutions

The Department of Health Care Services (Medi-Cal) can attach your home to satisfy their recovery claims (reimbursing the State of California for all Medi-Cal benefits paid to the recipient).  So now what?  Well, there are some techniques to avoid this recovery claim provided that steps are taken PRIOR to the death of the Medi-Cal recipient (or sometimes the spouse).  Some of those include the following, albeit that there are pros and cons to each of these that need consultation with a long term care planning attorney to determine the best approach for each situation. 

Create a life estate, gift the entire interest in the home to the kids prior to death or create an irrevocable trust to hold the home.   Each approach has its pros and cons and needs to be discussed in detail with an estate-planning attorney.  California is for the most part applying the law that existed in 1989.  However, the state legislature is currently changing the rules and the laws will be much more restrictive.

 You owe it to yourself to protect your assets NOW while you are competent to make decisions and while the laws are still favorable in California.  Call my office or complete an inquiry through my website for additional information. 

 

This entry was posted on Monday, December 5th, 2011 at 2:04 am and is filed under Medi-Cal.