For Medi-Cal qualification, one car is generally deemed exempt. We receive calls in our office, The Law Offices of Michael J. Young, 925-256-0298, www.WalnutCreekElderLaw.com, from people telling us that they are going to immediately sell the second car. They think they need to do this in order to create Medi-Cal eligibility for their loved one. We tell them that this may not be necessary, in that Medi-Cal allows you to have more than one car. The first car is exempt if it is used for the benefit of the applicant/beneficiary, or if it is needed for medical reasons. You can declare the most expensive car as the exempt car. The value of the second car, which is not exempt, will be added to the total value of the assets of the applicant. Remember that an individual applicant can only have $2,000 in non-exempt assets. A couple can have $2,000 in non-exempt assets for the “ill spouse” and $109,560 in non-exempt assets for the “well spouse.” The second car is not an exempt asset, and may have to be sold or transferred to create eligibility.
If the applicant does not have a car, they can purchase a car to “spend down” assets in order to create Medi-Cal eligibility. There is no “look back period” for this purchase. When I mentioned this at one of my recent seminars, one of the attendees jokingly asked if his parents could purchase a $1.5 million dollar Bugati automobile in order to create eligibility. I suggested that if they could afford such a car, they probably wouldn’t be calling me, and also that the eligibility worker may view this as an abuse of the system.
This blog is for informational purposes only and is not legal advice. Please see an elder law attorney for your particular case.
By Elder Law Attorney Michael J. Young. The Law Offices of Michael J. Young is located at 1931 San Miguel Dr., Suite 220, Walnut Creek, CA 94596. www.WalnutCreekElderLaw.com, LawYoung1@Gmail.com. Serving Contra Costa and Alameda Counties, including Walnut Creek, Concord, Brentwood, Pleasant Hill, Alamo, Antioch.