This is PART TWO
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. Intend to Return Home
If a single
person receiving Medi-CAL care in a facility owns a house, this family home
does not disqualify them form Medi-CAL, but could be subject to sale to pay for
Medi-CAL expenses. The house is only protected if a qualifying child or
dependent lives there or if the recipient intends on returning home. In California you must always
have the Medi-Cal recipient (or their attorney-in-fact) sign an intent to
return home.
Most families
sell the home and end up with a large amount of cash that must be spent down
before the loved one qualifies for Medi-CAL. Keeping the home avoids losing the
entire value of it to spend down. By retaining the home, Medi-CAL recovery may
not come after the full value of the home when the loved one dies.
Potential rental
income from the house would also go towards paying the nursing home care cost
and reduce the amount that Medi-CAL would have to pick up. This could mean that
Medi-CAL recovery using this strategy might go after a smaller share of its
cost in the recovery process.
In California,
an experienced Elder Law Attorney may be able to help you transfer the home to
an irrevocable trust to prevent Medi-CAL recovery on the family home.
2. Medi-CAL Treatment of a Home
If the community
spouse lives in the home then the home is exempt
from determining Medi-CAL eligibility. It does not count as an asset and
prevent the institutional spouse from receiving Medi-CAL help. On the other
hand any other real estate property, not the primary residence, will have to be
converted to cash and spent down before Medi-CAL will start paying the bill.
If the well spouse
living in the home does not in turn need Medi-CAL help in the future then one
of two things can happen to the house after the death of the institutional
spouse. Legally Medi-CAL has a claim against the property for recovery
services. At the death of the community spouse, the property cannot be sold
until the lien is satisfied.
In California, if the property is properly transferred into a
Medi-CAL Asset Protection Irrevocable Trust, the state does not consider the
house an asset for recovery. Always work with an experienced elder law attorney
when dealing with recovery issues. You can never assume what your state
recovery program will actually do.
We will discuss more issues regarding real property in our next blog.
We invite you to 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
Thanks for sharing, I will bookmark and be back again
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