As we enter our golden years, we naturally reflect on health concerns, such as what will happen if we need long-term care and how to afford it. These are legitimate questions we must consider. Medi-Cal can help, but qualifying is not always straightforward, particularly if you own a home or have savings. That is where Medi-Cal Asset Protection trusts come into play.
A Medi-Cal trust allows you to protect your assets while ensuring eligibility for benefits. However, these trusts must be set up correctly to comply with strict Medi-Cal rules. At Amity Law Group, our Covina Medi-Cal trusts lawyers could help you navigate the process, safeguard your assets, and plan for your future care. Contact an experienced trusts attorney today.
Understanding Medi-Cal Asset Protection Trusts
A Medi-Cal Asset Protection trust can help you qualify for Medi-Cal. When assets are placed inside this trust, they are shielded from Medi-Cal’s review, allowing you to preserve them and still qualify for Medi-Cal to pay for your long-term care. However, these trusts are irrevocable, which means that they require careful planning.
Once assets are placed in a Medi-Cal trust, they are no longer considered your assets. This is why Medi-Cal does not consider them when determining your eligibility. This helps ensure eligibility while preserving wealth for your loved ones. Medi-Cal has a five-year look-back period, meaning any transfers made too close to applying could still count against you. Early planning is key.
Why Consider a Medi-Cal Trust?
No one wants to deplete all their assets to pay for a nursing home stay. Long-term care costs add up quickly. A nursing home stay can exceed $100,000 annually, and in-home care is not much cheaper. Without Medi-Cal coverage, many families deplete their savings to afford care.
A Medi-Cal trust helps you:
- Protect assets from Medi-Cal estate recovery
- Qualify for Medi-Cal without spending everything
However, because of Medi-Cal’s 30-month look-back period, setting up a MAPT well before you need care is critical. By working with Amity Law Group, you can create a trust that meets your needs while following Medi-Cal’s strict requirements.
Assets That Can Be Placed in a Medi-Cal Trust
Not all assets need to go into a Medi-Cal trust, but commonly protected assets include the following:
- Primary residences (with certain restrictions)
- Savings and investment accounts
- Life insurance policies with cash value
- Rental properties
- Personal valuables
A Covina Medi-Cal trusts lawyer at Amity Law Group could help you determine which assets should be placed in your trust to ensure maximum protection.
Mistakes to Avoid When Creating a Medi-Cal Trust
Incorrectly setting up a Medi-Cal trust can lead to denied benefits or financial penalties. Some common mistakes include:
- Waiting too long—transferring assets too close to needing Medi-Cal triggers penalties
- Keeping too much control—if you can access the trust’s assets, Medi-Cal may still count them against you
- Failing to structure the trust properly which could leave assets vulnerable to Medi-Cal estate recovery
Working with a trusted Covina lawyer at Amity Law Group ensures your trust is set up correctly and aligns with Medi-Cal’s guidelines.
Learn If a Medi-Cal Trust is Right for You From a Covina Attorney
A Medi-Cal trust may be an innovative solution if you are concerned about long-term care expenses. However, every situation is unique, and it is essential to have the right plan in place.
At Amity Law Group, our Covina Medi-Cal trusts lawyers help families protect their assets while ensuring Medi-Cal eligibility. Contact us today to start preparing for your future with a dedicated estate planning attorney.
