Other Estate Planning and Probate Topics Attorney in Milpitas, California
How can I structure my estate plan to potentially qualify for Medi-Cal benefits while preserving my assets for my heirs?
How can I structure my estate plan to potentially qualify for Medi-Cal benefits while preserving my assets for my heirs?
Milpitas, CA estates & probate attorney Elijah Keyes discusses how to structure your estate plan to potentially qualify for Medi-Cal benefits while preserving your assets for your heirs. In California, changes to the rules governing Medi-Cal eligibility are significant. Historically, Medi-Cal eligibility stipulated that individuals could not possess more than two thousand dollars in non-exempt assets. Exempt assets, on the other hand, could be held without limit and included items such as primary residences, vehicles, 401(k)s with ongoing distributions, modest life insurance policies, burial plots, and personal property. Conversely, non-exempt assets encompassed anything outside these exempt categories, including additional vehicles, bank savings, and even high-value musical instruments.
Previously, California enforced a strict limit of two thousand dollars in non-exempt assets for Medi-Cal eligibility. However, the current regulation permits applicants to possess up to one hundred and thirty thousand dollars in non-exempt assets. It is crucial to recognize that these rules are subject to change in the future.
In navigating these shifting eligibility criteria, the most critical aspect is ensuring that individuals possess the appropriate legal documents to grant their family members the authority to manage their assets effectively. This authority is vital for converting non-exempt assets into exempt ones, facilitating the transfer of funds if necessary, and allowing appropriate expenditures. For effective Medi-Cal planning, the ability to achieve financial qualification while preemptively avoiding potential medical recovery actions, which involve repaying Medi-Cal for healthcare expenses, is paramount.
Given the rapidly changing landscape in California, the utmost priority lies in granting family members the flexibility and authority they need to navigate evolving circumstances effectively. This entails having the requisite legal documents in place to ensure eligibility and mitigate the risk of future recovery actions.
