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:

1. The Medi-Cal member has received nursing facility services and/or home community-based services on or after his/her 55^th birthday

AND

• 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:

1. A surviving spouse or domestic partner
2. A surviving Child under the age of 21
3. 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