How do I protect my assets from Medi Cal?

A Medi-Cal Asset Protection Trust is an irrevocable trust specifically created to hold and manage your primary residence and other assets so that you can qualify for Medi-Cal and to prevent the State of California from taking your home and assets from your heirs.

Can funds be withdrawn from an irrevocable trust?

An irrevocable trust is a financial arrangement much like other types of trusts except that the grantor relinquishes ownership and control of the property, assets, and any funds in the trust. The grantor is not allowed to withdraw any contributions from the irrevocable trust.

Does an irrevocable trust protect assets from Medicaid?

An irrevocable trust can protect your assets against Medicaid estate recovery. 5 Assets in an irrevocable trust are not owned in your name, and therefore, are not part of the probated estate.

What is an irrevocable Medi-Cal asset protection trust?

The irrevocable Medi-Cal Asset Protection Trust was designed to hold assets such as a house and bank accounts separate from the individual’s personal assets so that they would qualify for Medi-Cal Long Term Care Benefits.

Can a trust be used to recover unpaid Medi-Cal costs?

Fortunately, assets will be protected from Medi-Cal estate recovery if it is transferred to a standard revocable living trust prior to the recipient’s passing. Medi-Cal will not be able to come after your surviving spouse and/or beneficiaries to recover unpaid portions of Medi-Cal care.

Can a living trust exempt assets from Medi-Cal?

Since assets held in a decedent’s revocable living trust will, as of January 1, 2017, avoid both probate and Medi-Cal recovery and, as a result, preserve your estate for your loved ones – it is now, more than ever, important to plan for your loved ones by establishing a revocable living trust.

Can you transfer your home to a Medi Cal Trust?

Both federal and state laws require reimbursement of Medi-Cal costs from any assets you have left under your name, namely your home. However, if you transfer your home to a Medi-Cal Asset Protection Trust, the State of California cannot come after your home.