Most Torrance elder lawyers agree that Medi-Cal is one of the best programs provided by the government for senior citizens who need help paying for long-term care. Medi-Cal is a needs-based program with strict income and asset limits that must be followed; otherwise, seniors can face penalties if they do not meet those limits. There are some exceptions for assets that are uncounted for Medi-Cal purposes, including a house or a car. However, after the senior receiving Medi-Cal passes away, the government must try to collect on the costs of the program paid out from the senior’s estate. There are two ways the government will try to collect from the deceased’s estate: through estate asset recovery and real estate liens.
Estate Asset Recovery
When recovering funds through the estate assets, the state must submit a claim to the probate court for any expenses owed by the estate. In most states, those estate assets can either come from solely-held assets, otherwise known as probate assets, or from both solely-held and jointly-held assets, which would be any assets the deceased had an interest in but did not pass through the probate estate.
In California, this is very different because under the current laws and regulations Medi-Cal can only recover from assets that are titled in your name alone at that time of your death. This list does not include any jointly-owned bank accounts and real estate, assets with payable on death designations, or any asset held in a Revocable Living Trust. Under the current law, the government will only collect on probate assets, but it’s important to speak with an experienced Torrance elder law attorney to make sure that your assets are titled correctly and that your revocable living trust is up to date to avoid estate asset recovery.
Real Estate Lien
The government can also seek repayment by placing a lien on any real property owned by a Medi-Cal beneficiary at the time of their death. The state will collect whatever is owed to them by the estate when the property is sold in the same way that a mortgage would be paid off or how a tax lien would be satisfied.
Keep in mind that there are circumstances when the state cannot recover the costs of Medic-Cal care. These circumstances typically involve when there is a surviving spouse, a disabled or minor child, or a sibling or child caregiver who served as a care provider for a certain amount of time before the beneficiary was moved to a long-term care facility.
If you would like to learn more about the Medi-Cal process, or if you’d like to discuss your options for Medi-Cal planning for yourself or a loved one, please give us a call at (310) 782-6322 to set up a consultation with one of our Torrance elder lawyers.