• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Attorney and Staff Profiles
    • Scott P. Schomer Certified As Specialist In Estate Planning, Trust And Probate Law
    • Trust and Probate Litigation: Verdicts and Settlements
  • Services
    • Legacy Planning
    • Probate
    • Asset Protection & Business Planning
    • Trust Administration
    • Trust, Probate and Estate Litigation
    • Estate and Gift Tax Figures
    • Family-Owned Businesses
    • IRA & Retirement Planning
    • LGBTQ Estate Planning
    • Loss of a Loved One
    • Power of Attorney
    • SECURE Act
    • Special Needs Planning
    • Young Families
  • Probate
    • Is Probate Always Necessary In California?
    • Why Hire A Probate Attorney
    • Probate Administration
    • Probate & Estate Planning Savings Calculator
    • Probate Code 850 Petitions
    • Probate Disputes
    • Probate In California
    • Probate Laws
    • Probate Litigation
  • Elder Law
    • Conservatorship
    • Coping with Alzheimer’s
    • Estate Planning
  • Resources
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
    • Estate Planning
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Special Needs Planning Can Protect Benefits
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Free Seminars
      • Webinars
    • Frequently Asked Questions
      • Advance Health Care Directives
      • Asset Protection
      • California Adult Conservatorship
      • Estate Planning
      • Estate Planning & Remarriage
      • Frequently Asked Questions For Families Without An Estate Plan
      • In-Home Elder Care
      • IRA Inheritance Planning
      • IRA & SECURE Act
      • Irrevocable Trust
      • Last Will and Testament
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Living Trust
      • Probate
      • Social Security & Medicare
      • Special Needs Planning
      • Trusts
      • Trust Administration
      • Wills
    • Newsletters
    • Pre Consultation Form
    • Presentation
    • Published Book
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Communities We Serve
    • Los Angeles County
      • Bellflower
      • Cerritos
      • El Segundo
        • El Segundo Probate Resources
      • Hawthorne
      • Inglewood
      • Long Beach
        • Long Beach Elder Resources
        • Long Beach Probate Resources
      • Manhattan Beach
      • Playa del Rey
      • Santa Monica
      • Westchester
        • Westchester Elder Resources
        • Westchester Probate Resources
    • Orange County
      • Anaheim
      • Buena Park
      • Cypress
      • Fountain Valley
      • Garden Grove
      • Huntington Beach
        • Huntington Beach Elder Resources
        • Huntington Beach Probate Resources
      • Los Alamitos
        • Los Alamitos Probate Resources
      • Rossmoor
      • Stanton
      • Seal Beach
      • Westminster
  • Contact Us
  • BLOG
  • Videos

Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

Connect With Us Today (310) 337-7696

Attend a Free Webinar
Home » Estate Planning Articles » What You Need to Know about Medi-Cal Estate Recovery

What You Need to Know about Medi-Cal Estate Recovery

December 30, 2016

Compliments of Our Law Firm

Written By: The American Academy of Estate Planning Attorneys

The longer you live, the greater the odds are that you, or a spouse, will need long-term nursing home care. To cover the cost of that care, you may find yourself turning to Medi-Cal for help. You may have heard, however, that in order to qualify for Medi-Cal you need to sell your home and use the proceeds to cover expenses first. Someone else may have told you that you can probably avoid selling your home when you apply for Medi-Cal; however, the state will take it after your death as reimbursement for the money Medi-Cal spent on you while you were alive. Perhaps the home has been in your family for generations and you hoped to pass it down to your son or daughter. Will you be able to keep your home and realize your dream of passing down the family home?

Medi-Cal Eligibility – Income and Asset Limits

Unlike Medicare, which only covers long-term care expenses under very limited circumstances, Medi-Cal will cover nursing home expenses for those who qualify for benefits. The problem for many seniors who apply for Medi-Cal benefits is that the program imposes both income and asset, or “countable resources,” limits. The income limits are linked to the Federal Poverty Level which changes each year. Seniors on a fixed income, however, may not have a problem with the income limit. It is the asset limit that often presents a problem for applicants who failed to plan ahead by including Medi-Cal planning in their overall estate plan.

The asset limit is typically as low as $2,000 for an individual and $3,000 for a couple. This means you cannot have “countable resources” valued over the limit. If your assets do exceed the limit, Medi-Cal will impose a waiting period during which you will be expected to “spend-down” your assets by selling them and using the proceeds to cover your nursing home expenses. While the asset limit poses a problem for many senior applicants who have amassed a sizeable retirement nest egg, your home is likely safe from the spend-down requirement. This is because certain assets are exempt from consideration when determining Medi-Cal eligibility.

Each state has its own slate of exempt assets, based in part on federal law. However, every state exempts the primary residence of the applicant, with certain requirements. Most states exempt the equity up to a certain limit, either $500,000 or $750,000, adjusted for inflation from 2005. Further, either the applicant’s spouse or dependent must continue to live in the residence, or the applicant must have an intent to return home to the residence. Therefore, the value of your home will likely not be counted when Medi-Cal determines your eligibility for benefits, meaning your home remains safe while you are alive. What happens when you die, though?

What Is Medi-Cal Estate Recovery and Do You Need to Worry about It?

As you can imagine, Medi-Cal expends a significant amount of money on participants of the program who need nursing home care. In an effort to recover some of those funds, federal law requires the individual states to make a claim against the estate of a Medi-Cal recipient after their death. Known as the “Medi-Cal Estate Recovery Program,” or MERP, this program is what your friend was referring to when they told you that you might lose the house after your death. Once again, however, there may be a way to save your home and pass it down to the next generation, as you had planned.

In general, the MERP rules allow the state to file a claim against the estate of the last surviving spouse. If it was your spouse who needed nursing home care instead of you, the state cannot pursue recovery from your spouse’s estate as long as you are still alive and living in the home. The state can, however, file a claim against your estate when you die.

As with the asset exemptions used when determining initial Medi-Cal eligibility, each individual state also determines the exceptions to the estate recovery program. Some common examples where the state will decline to pursue a claim against the estate of a Medi-Cal recipient (or spouse) include:

  • There is a child under the age of 21 living in the home
  • There is a disabled child of any age living in the home
  • The value of the estate is below a specific value
  • The Medi-Cal expenses are below a specific amount
  • Pursuing a claim would cause an “undue hardship” on the heirs

If your home falls into one of the exceptions for your state, you will not need to worry about losing the home to the Medi-Cal Estate Recovery Program. Even if your home does not fall neatly into one of the exceptions, you may still be able to avoid losing the house through careful estate planning. Using a Trust, joint tenancy, and/or gifting may protect your home so it can be passed down to your daughter when you are gone.

The key to ensuring that your assets are protected and you qualify for Medi-Cal when needed is to work closely with an experienced estate planning and elder law attorney to include Medi-Cal planning in your overall estate plan.

Primary Sidebar

Schomer Law Group, Los Angeles Estate Planning and Elder Law Attorneys

Schomer Law Group

FREE Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Testimonials

Client Review
July 29, 2020
    

We need to update our Living Trust and attended Schomer Law Group’s seminar. Afterwards we made an appointment and were impressed by the attention Scott Schomer and Liran Aliav gave to our case answering all questions and making suggestions how to minimize the estate tax. All the office staff is very friendly and we highly recommend Schomer Law Group.

Frank & Jutta R
Client Review
July 29, 2020
    

Mr. Schomer does an amazing job at explaining all the intricacies of establishing a trust. He and his team help you every step of the way so you always know what to expect and what you are preparing for. Best education you can get and the best gift you can give your family.

Paula M.
Client Review
July 29, 2020
    

We put off getting a trust for years. After attending a seminar with Scott Schomer we realized that the time had come to get a trust. We were given very good reasons for why we should get a trust. No pressure, just the plain facts. We are very relieved and happy to finally get our trust. Scott and Cesar were very knowledgeable, helpful and listened to our ideas of what we had to say. Any questions that we have now and in the future they are available to assist us to solve them. I recommend the Schomer Law Group and I wish we knew about them years ago.

Phillip G.
Client Review
July 29, 2020
    

When you’re presented with an invitation to attend in a mailer, you may have reservations, this was a truly gift!! My wife and I were educated and guided through the process of creating a family trust.
Both of our parents had attorney’s that “worked” with wills/trusts, but came up short. Fortunately, the Schomer Law Group was there! This is a group of attorney’s that only specialize in estate planning, law, and financial advice, so you know you’re getting expert and personalized advice. This is the best money we’ve ever spent!! Thank you!

Bob L.
Client Review
July 29, 2020
    

We knew we had to update our 10 year old ( 20 page ) trust. After several detailed meetings, Liran and Cesar produced a large ( 300 pages + ) highly detailed trust document that we have used to make sure our family estate is well managed and clearly understood.
They were all very helpful in answering myriad questions and explaining all the various options…

We would strongly recommend the Schomer Law Group to anyone with an estate of even modest means, to assure proper planning…

Bob S.
Client Review
July 29, 2020
    

We had contemplated updating our will and starting a trust for a number of years. After attending a talk by Scott Schomer we realized we were long overdue and the potential downside of not having our affairs in order was significant. Scott and his excellent team made the process simple and seamless. They were great listeners, addressed all our concerns and even pulled and processed all the paperwork from our financial institutions. If you are looking for assistance with estate planning, wills and trusts, we highly recommend Schomer Law Group.

Robert F.
Client Review
July 29, 2020
    

Very competent & informative – friendly atmosphere – ready to answer the most mundane questions – relaxed.

Joan S.
Client Review
July 29, 2020
    

Mr. Schomer was excellent in getting our family trust and estate affairs in order. My husband and I had put off doing this and Scott really made the process easy! He is very passionate in making sure his clients get all that they need and we really appreciated it. I would highly recommend him and look forward to the many years he will be available to assist our family.

Kim

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram

Office Address

El Segundo
222 North Pacific Coast Highway., Suite 130
El Segundo, CA 90245
Phone: (310) 337-7696
Fax: 310-337-1277

See Larger Map Get Directions

Office Hours

Monday9:00 AM - 6:00 PM
Tuesday9:00 AM - 6:00 PM
Wednesday9:00 AM - 6:00 PM
Thursday9:00 AM - 6:00 PM
Friday9:00 AM - 6:00 PM

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Schomer Law Group

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram

footer-logo
© 2022 American Academy of Estate Planning Attorneys, Inc.

Schomer Law Group

Attorney Advertisement.

© 2022 American Academy of Estate Planning Attorneys, Inc.