Avoid a Medi-Cal Estate Recovery Lien for Your Home

If you or your parents are in a nursing home or assisted living facility, there is a good chance they are receiving benefits though the state's Medi-Cal program.  Medi-Cal insurance takes over for Medicare for qualified seniors who are in a facility for more than 60 days.  To qualify for Medi-Cal you must have minimal cash or cash equivalents at the end of each month.  However you can still own a personal residence and qualify for Medi-Cal.   While you are alive, the state will not do anything to your home no how matter how much Medi-Cal benefits you use.  However, once you pass on, the state will put a lien on any real estate you or your living trust still owns at that time.  To avoid this lien, you will want to get your property out of your estate and into an Medi-Cal Personal Residence Trust.  This trust allows you to continue to live in your home if you leave the nursing home but th ehome will no longer be in your name and thus no longer subject to the Medi-Cal lien.  The trust can be drafted to pass on your interest in your home to your kids upon your passing and because the trust is irrevocable, your home will not be exposed to yours or your children's creditors.  Your kids still get your low proposition 13 property taxes and a stepped up basis when you pass on.

For more information on Medi-Cal Personal Residence Trust call Brian Chew at 949.288.3598 or fill out the contact us form.