California Medi-CAL Planning - Part Three

 This is PART THREE in our blog helping middle classed family members understand how to qualify for  Medi-CAL (Medi-Cal in California) to pay part or all of the cost for skilled nursing home care.

Always remember, you do not operate on yourself and we highly recommend that you get assistance from a qualified elder law attorney for your family’s Medi-CAL planning, allows you to legally qualify for the federal and state Medi-CAL Program. There are several strategies a family can use to make sure their loved one can qualify for Medi-CAL Long Term Care Benefits.

1. Special Home Exemption Rule

It's often the case that an adult child will move into the family home to take care of aging and or ill parents. In this case Medi-CAL has a special leniency rule to allow transfer of the home to this  adult child and not result in a penalty for a transfer for less than value. If the child provides care for a parent in a parent's home for at least two years, and that care kept the recipient out of a nursing home, the property can be transferred to the child without penalty and the property will not be a subject asset for Medi-CAL recovery. Medi-CAL will require some proof of this. Typically an affidavit from a third-party care provider such as a doctor or an agency stipulating that the care was given for at least two years and resulted in keeping the care recipient out of a long-term care facility, will be sufficient evidence. It's important to get the assistance of an experienced elder law attorney to ensure you file this properly and timely with the  Medi-Cal Recovery Unit.

2. Joint Tenancy

Some families anticipating the need for Medi-CAL benefits are tempted to put a child's or sibling's name on property titles to avoid probate and Medi-CAL recovery. It may not be a good idea as there are problems with this strategy. They are:

• If the family member that is put on the home’s title becomes subject to a judgment, (arising from an accident or debt obligation), then at least 50% of the family home can be lost to a court ordered judgment.

•  The family member on the title must consent to sale of the property. This may cause problems with the wishes of the original owner.

• Redoing the title must occur at least 3 years prior to claim in order to avoid look back rules and a sanction on a gift to a non spouse owner.

• The person assuming joint ownership has received a gift and loses the step-up in basis at death. Capital gains taxes may have to be paid. And if the property is not the principal residence of the new tenant, the capital gains exclusion cannot be used either.

• Note: In California, an Elder law attorney can draft a grant deed transfer with a life time occupancy agreement to avoid these problems.

Take advantage of a free phone consultation or appointment for a free 30 minute consultation to review your individual situation and determine if you would benefit from our experience and legal services.

For more information go to www.la-lawcenter.com or call us at:

Local Phone: (818) 241-4238 or

Toll Free Phone: (877) 537-8283