If you die after having been on Medi-Cal, the State will try to recover from your estate what they have paid out for your benefit. If there is nothing left in your estate, there is nothing for the State to take. If your home is still in your estate when you die, it could be subject to State revocery. Your revocable living trust does not protect your home from State recovery. If you transferred your home prior to your death, following the Medi-Cal regulations, it would not be subject to recovery by the State upon your death. If you transferred your home and reserved an irrevocable life estate, the home would not be in your estate when you die, and not subject to recovery. The life estate would disappear upon your death, and the State does not pursue recovery against reserved irrevocable life estates.
The State will not pursue recovery against the surviving spouse of a deceased Medi-Cal beneficiary. After the surviving spouse dies however, the State can pursue recovery against any property received by the surviving spouse through distribution or survival from the Medi-Cal beneficiary spouse.
If the Medi-Cal recipient is survived by a minor child under the age of 21, or if there is a blind or disabled child of any age who survives the Medi-Cal beneficiary, there can be no claim for recoupment by the State.
This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers and families through the Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.