Asset Protection, Medi-Cal and Financial Durable Powers of Attorney

Asset Protection, Medi-Cal and Financial Durable Powers of Attorney

Specialized Language is required in Financial Durable Powers of Attorney for Asset Protection and Medi-Cal planning. Most Financial Durable Powers of Attorney do not have the required language to make gifts and transfers of assets, like the home, for asset protection and Medi-Cal Planning.

Click Here Watch A Short Video On This Subject


Please click the attached to view a short video on a Medi-Cal

After Acquired Asset Strategy. The couple’s home is

transferred from the ill spouse to the well spouse. After we

qualify the ill spouse for Medi-Cal, the home can be sold

by the well spouse without disqualifying the wife for

Medi-Cal. You will of course need legal advice from an elder law

attorney before proceeding with this strategy.

Medi-Cal After Acquired Asset Strategy




Medi-Cal Covers “Skilled Nursing Facilities”

It seems that many people are under the assumption that Medi-Cal pays for all kinds of housing for an older persons. This is not the case. Medi-Cal pays for nursing home care in “skilled nursing facilities.” There must be a doctor’s order that the applicant’s stay in the nursing home is “medically necessary.”

The applicant of course must meet the asset and income qualification rules for eligibility for Medi-Cal. There is also a share of cost that the applicant must contribute to the nursing home.

Except in rare circumstances under waiver programs, you must “private pay” for a stay in an assisted living facility or board and care home. Some people have long term care insurance to help pay for these facilities, but most do not.

You should accomplish now long term care planning with your elder law attorney to plan for your future care. Your attorney will help you plan for qualification for Medi-Cal for a stay in a skilled nursing facilitiy.

Moreover, your attorney will help you plan how you will private pay for your possible need for in-home-care, assisted living facilities and board and care homes. He can help you determine how you can reposition certain of your assets into new insurance products to help pay for your future care. With traditional long term care insurance, if you don’t use it, you lose it. If you never make a claim, your monthly premium payments are generally wasted. With a new kind of insurance product, you can keep your investment in tact, and only utilize the long term care portion of the product if you need it. In addition, under the Federal Pension Relief Act, you may be able to transfer a portion of an appreciated account into such a product without suffering capital gains treatment.

Your elder law attorney will help you to increase the quality of your life, and not just figure out who-gets-what after you pass away. 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 advised 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.


April 2015 CA Medi-Cal Quick Reference Guide (APPR Change)

The State of California has changed the Average Private Pay Rate – Divestment Penalty Divisor (APPR) for Medi-Cal qualification for 2015. A brief listing of the Medi-Cal qualification requirements with this change is set forth below:

Community Spouse Resource Allowance (CSRA)


This is the amount that the community, or (at home) well spouse can retain in liquid assets. This amount does not include exempt assets, such as the home and qualified accounts, such as IRA’s.

Minimum Monthly Maintenance Needs Allowance (MMMNA)


This is the minimum amount of income the well spouse can keep.

Average Private Pay Rate – Divestment Penalty Divisor – (APPR)


This is the amount the State pays to nursing homes on the Medi-Cal program, minus a share of cost by the applicant. This figure is also used to calculate penalty periods of ineligibility for Medi-Cal.

Applicant Resource Allowance


The applicant can keep this amount in cash, checking, etc.

Monthly Personal Needs Allowance


The amount of income the ill person is allowed to keep.

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