Medi-Cal planning is time-sensitive — the look-back period means you must act before benefits begin. Families in Chatsworth, Northridge, Porter Ranch, Granada Hills, Woodland Hills, West Hills, Simi Valley, and across the San Fernando Valley trust LAESQUIRE to protect their parents' home and their inheritance.
Medi-Cal has a look-back period — transfers made too close to the time benefits begin may trigger penalties. The best time to act is before your parent needs Medi-Cal. If your parent is already receiving benefits, contact us immediately to understand your options.
There is a significant drawback to keeping a home as an exempt asset for Medi-Cal purposes. If a Medi-Cal recipient owns a home at the time of their death — and the home is still in their name — the California Department of Health Services (DHCS) will likely make a claim for reimbursement against the estate. This claim may be satisfied from the proceeds of the home's sale, or in some cases converted to a lien against the property.
In practical terms: your elderly parent qualifies for Medi-Cal, receives long-term care benefits, then passes away — and the state recovers those costs from the sale of the family home. The children receive what's left, if anything.
A properly structured Medi-Cal trust (also called an asset protection trust in this context) removes the home from the Medi-Cal recipient's name in a way that protects it from DHCS liens, while preserving their eligibility for Medi-Cal benefits. This allows your parent to receive the care they need without sacrificing the family home and the inheritance your family worked decades to build.
A home may be transferred to someone else without incurring a transfer penalty — so long as the home is exempt at the time of transfer and the transfer is done correctly and in time.
Medi-Cal planning is one of the most time-sensitive areas of estate planning. Regulations are complex, the look-back period catches many families off guard, and new regulations from the state can change the window of opportunity. Many families only discover the problem after a parent has already passed and the state files its recovery claim.
If your parents are in their 60s or 70s and own a home, the best time to explore Medi-Cal planning is now — before any long-term care need arises. This is an act of financial protection for the entire family.
When a home is transferred as part of Medi-Cal planning, the homeowners insurance policy may need to be updated to reflect the new ownership structure. INSUREDLA, the insurance lane of LA Vakil, can review your coverage to make sure the transfer doesn't create an unintended gap in protection. This coordination is something most estate planning firms miss entirely.
Please call us at 818-714-1789 to schedule an appointment to safely transfer your parent's home to preserve the family inheritance and avoid transfer penalties. The regulations in this area are complex and changing — this is not a situation to navigate without experienced legal guidance.
Families in Chatsworth, Northridge, Porter Ranch, Granada Hills, Woodland Hills, and across the San Fernando Valley trust LAESQUIRE for Medi-Cal planning that actually protects the family inheritance.
📞 818-714-1789Disclaimer: This page provides general information about Medi-Cal planning and does not constitute legal advice. Medi-Cal rules and regulations are complex and subject to change. Co