May
21
2015
0

Medi-Cal Gifting Language For Your Revocable Living Trust by Michael J. Young Elder Law Attorney

Most revocable living trusts do not have the required asset protection and gifting language for Medi-Cal qualification which is needed if the maker of the trust becomes mentally incapacitated. Click below to see Walnut Creek elder law attorney Michael J. Young explains more below about the specialized language.

Walnut Creek Elder Law Attorney Michel J. Young Talks About Medi-Cal And Asset Protection Language You Should Have In Your Revocable Living Trust

May
14
2015
0

Medi-Cal Qualification and the Home – Contra Costa Elder Law Attorney Michael J. Young

Click here to watch a video of  elder law attorney Michael J. Young of Walnut Creek, CA talk about Medi-Cal qualification and the home.

Medi-Cal Qualification and the Home

You can have a home and qualify for Medi-Cal. You can also take steps to protect your home from a Medi-Cal lien.

May
12
2015
0

Elder Law Attorney Michael J. Young discusses life insurance as it pertains to Medi-Cal and long term care planning

Click here to watch elder Law Attorney Michael J. Young discuss life insurance as it pertains to Medi-Cal qualification and long term care planning

There are several things you should know with regard to life insurance and qualification for Medi-Cal. In addition, there are long term care opportunities using life insurance policies. Click above to view estate planning and elder law attorney Michael J. Young, in Walnut Creek, CA discuss these issues.

May
11
2015
0

Medi-Cal, Capital Gains and the Home

In previous blogs, we have discussed how we can establish the home as an “exempt asset” for qualification for Medi-Cal. Your elder law attorney can help you take the steps necessary to exempt your home and help you qualify for Medi-Cal. However, if your home is in your estate when you pass away after having been on Medi-Cal, the state can pursue a recovery lien against your home. The state will want to recoup the funds they have paid to the nursing home on your behalf.

Keep in mind however that the state cannot pursue a recovery lien against your home if your home is not in your estate when you die. The remedy for this may be for you to transfer your home to a child or other family member after you have established the home as an exempt asset for qualification for Medi-Cal. But beware, there could be a tax problem. If you make such a transfer to a child, the child will assume your tax basis on the property. This means that if the child then sells the property, he or she may have to pay capital gains tax on the sale. This tax is basically calculated on the difference between the purchase price you the parent paid for the property, and the sale price the child obtained. The child would not be able to take advantage of the $250,000 capital gains tax exclusion on the sale that the parent had under Federal Tax Code Section 121.

To remedy this problem, the property could be transferred to a child with a reserved life estate in favor of the parent. The deed for this transfer from the parent to the child would create a split interest on the record, wherein the parent retains a life estate in the property, and the child is the grantee of the remainder interest in the property. After the parent dies, the child should receive a full step up in basis on the property under IRS regulations. The child could then sell the property at the time of the parent’s death, without incurring capital gains. The home would not be available for Medi-Cal recoupment after the home is transferred to the child with the reserved life estate in favor of the parent. This procedure is recognized by Medi-Cal provided that the prescribed procedure is used, and the correct language is utilized in the deed. There are of course other issues you will need to consider regarding the transfer of the home. Your elder law attorney can help you through this process if it is appropriate for your situation.

This information is not to be taken as legal advice, and you are encouraged to see your Walnut Creek 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, Seniors and families through their 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.

May
04
2015
0

Medi-Cal Gifting Rules for a Single Person

Click the link below to find out about the Medi-Cal gifting rules for a single person.  Medi-Cal presently has a 30 month look-back period for gifting. The period of ineligibility starts when the gift is made. When the Deficit Reduction Act (DRA) rules are adopted in California, there will be a five year look back period with the penalty period beginning when you are in a nursing home and otherwise eligible for Medi-Cal.

CLICK HERE: Walnut Creek, CA Elder Law Attorney Michael J. Young talks about Medi-Cal gifting regulations for a single person

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.

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