By campbellc62869487, Jan 20 2017 06:40PM
2017 Medi-Cal Recovery Changes
There are significant changes to Medi-Cal recovery law for 2017. The most dramatic change is on the recovery of outlays by Medi-Cal after the death of the Medi-Cal recepient. Under the prior law, a Medi-Cal claim was a possibility against a Medi-Cal recipient's assets regardless of the form of the "estate". That is, it would not matter if the asset (say a home) was in a trust, in joint tenancy or in a probate estate. On January 1, 2017 that changed in California under SB 833. Now recovery is limited to those estates that are subject to probate under California law. Thus assets in a properly funded living trust will no longer be subject to the dreaded post death recovery claim by Medi-Cal.
The same protection is provided for joint tenancy or survivorship but, the protection is not available if both joint tenants or owner and survivor die in the same occurance. Also, once the survivor later dies, the protection would not be available for him or her, since a probate would be required at that point.
That leaves the Living Trust, properly funded, as the surest form of asset protection against a Medi-Cal claim.
For those on the fence about having a Living Trust done as an estate plan, the importance of doing so has never been more pronounced, in terms of protecting your assets, primarily your home, from Medi-Cal recovery should you or your spouse incur long term care.
Sandra Clark of this office is an experienced estate planner, and can help you get your estate plan in order , including drafting and funding a Living Trust in 2017. Call us at (530) 244-6286 should you want an appointment.