What assets can you keep when qualifying for Medi-Cal?
Your Home: Your home is generally exempt, or not counted, in determining eligibility for Medi-Cal. The Medi-Cal applicant, or their representative, must express an intent to return home. This is confirmed on the Medi-Cal application. It is also confirmed when you execute your estate planning documents with your elder law attorney. The home is also exempt if a spouse, minor, blind or disabled child lives in the home. You will most likely want to transfer your interest in the home to your spouse or child in order to avoid a recovery by the state against your home after you die. You will need the help of your elder law attorney regarding an transfers concerning the home.
Personal Property: Your household goods and personal effects are totally exempt for determining eligibility for Medi-Cal.
Cars: Medi-Cal will give you an exemption for one car.
Jewelry: When one spouse is in a nursing home, all jewelry is exempt. For a single person, wedding and engagement rings and heirloom jewelry are exempt.
Whole Life Insurance: You cannot have more than $1500 cash value in your policy. If there is more than $1500 cash value, it must be reduced.
Term Life Insurance: Term life insurance is totally excluded.
Burial Plots: Burial plots are totally excluded:
Prepaid Irrevocable Final Expense Trusts: You can put any amount into an irrevocable final expense trust for your funeral and final expenses. These trusts are used for general estate planning, but are also helpful for planning for Medi-Cal eligibility. You can “spend down” a portion of your assets by transferring them to a final expense trust in order to create eligibility for Medi-Cal. You can ask your elder law attorney about this trust, and there is generally no fee for its creation and implementation.
IRAs and work-related annuities: If the IRA is in the applicant’s name, the IRA is exempt if the applicant is receiving periodic payments of interest and principal. If the IRA is in the well spouse’s name, it is totally exempt.
Community Spouse Resource Allowance: The spouse at home, called the community spouse, can have up to $119,220 in liquid assets, plus the home, IRAs and other exempt assets listed above.
For additional information, you can contact your elder law attorney Michael J. Young. 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, 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA http://www.WalnutCreekElderLaw.com, 925-256-0298,lawyoung1@gmail.com, we practice elder law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with Sustainable Estate Planning TM, long term care planning, asset protection plans, special needs trusts, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order to help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension Benefit.