How to protect your Home from Medi-Cal Estate Recovery
How to protect your Home from a Medi-Cal Estate recovery
The good news is that Medi-Cal Estate recovery laws are now more favorable.
Avoiding Probate can mean avoiding Medi-Cal Estate Recovery.
For deaths (of Medi-Cal beneficiaries) occurring after Jan 1, 2017, according to the Department of Health Care Services (DHCS 9060 Rev 01-17) Medi-Cal will ONLY pursue recovery/repayment if both the following apply:
- The Medi-Cal member has received nursing facility services and/or home community-based services on or after his/her 55th birthday
- The Medi-Cal member has real (i.e. a house) or personal property…that will be part of their estate subject to probate.
Importantly, according to DHCS, there will be NO Estate Recovery attempt if there is:
- A surviving spouse or domestic partner
- A surviving Child under the age of 21
- A blind or disabled surviving child of any age
Therefore, Medi-Cal Estate recovery, when warranted, will be limited to the deceased member’s estate subject to Probate. According to the DHCS website:
“The Department (i.e. Medi-Cal) will not recover the value of a deceased Medi-Cal member’s property if it transfers to a different owner . . . by Trust . . .”
There are many ways to avoid Probate, having a Revocable Living Trust is one of them.
For more information please contact our office for advice on how this can be done.
Medi-Cal Planning Strategy