Will my Assets be Safe if I am also Receiving Medi-cal?

If you or your spouse had or are currently receiving Medi-Cal benefits, the one way to protect your house is by creating a trust. Assets included in a living trust are now protected from Medi-Cal benefit recovery. Now, as long as you have a living trust in place, Medi-Cal no longer has rights to place a lien on your home.

Before 2016, Medi-Cal had the right to seek reimbursement (or put a lien) on your estate after your passing even if it was protected by a living trust. That is no longer the case currently. Without trust, Medi-Cal can and will place a lien on your property.

Here are some reasons why you should invest in a complete estate plan and avoid future burden for your family:

• You have the opportunity to control who will receive what and when they will receive it after you have passed away.
• You control how your estate will be handled, not the probate courts.
• For the price of creating a complete estate plan, you and your family will save more money in the long run rather than spending thousands to obtain your estate through probate court as well as potentially losing equity to Medi-Cal liens.
• A complete estate plan will keep your assets private, avoiding the possibility of your finances being made public or Medi-Cal obtaining them.

What is an Estate Plan?

If you own any assets, an estate plan ensures that your assets are distributed to your loved ones after you pass and will protect it from Medi-Cal liens. A complete estate plan will include:

Trust

A document which places your assets into a trust during your lifetime and then transferred to designated beneficiaries after your death by your chosen representative called a successor trustee. It is a set of instructions for how to dispense your estate and to whom will be in receipt of your estate.

Will

Instructions for how your estate will be distributed after your death.

Advance Healthcare Directive

Instructions for how you are to receive medical treatment when you are no longer able to make healthcare decisions for yourself.

Power of Attorney

A document stating that you designate a specific person to act on your behalf to handle business, legal, and other private matters that you are no longer able to make for yourself.

If you are interested in creating an estate plan, give us a call at 714-546-4600 to schedule a free consultation.