A: Medi-Cal Planning is the systematic approach of helping you protect your home and preserve your assets while still qualifying for Medi-Cal benefits. Medi-Cal Planning is especially important to married couples who are unable to qualify for long-term care insurance or who are unable to pay the high premiums. Medi-Cal eligibility is determined by formulas based on the amount of income and resources available to the applicant. Medi-Cal planning involves the purchasing, transferring, conversion and/or liquidation of assets to enable you or your loved one to qualify under Medi-Cal’s test of income and resources.

Due to changes in federal laws enacted in 1996, almost anyone can qualify under Medi-Cal’s eligibility tests by working within the complex rules and regulations of Medi-Cal. Depending on the individual’s specific circumstances and objectives, the details of Medi-Cal Planning may be different from one individual to the next.

The Department of Health Services (DHS) also requires that a Medi-Cal applicant sign a declaration stating that they are aware of the possibility of a “Notice of Spend down”.

The rules which govern Medi-Cal eligibility are complex and change each year. Consulting a qualified Elder Law Attorney before transferring assets is the best course of action to avoid an improper transfer which may result in a period of ineligibility for up to 5 years.

Q: Is our property protected against Medi-Cal claims if all our assets are in a Living Trust?

A: No. A Living Trust does not protect you from Medi-Cal claims. Any non-exempt property owned by your living Trust is subject to Medi-Cal eligibility rules and recovery claims.

Q: How can I protect my assets and still qualify for Medi-Cal?

A: Since a married applicant who requires long-term care is only allowed to keep $2,000, most Medi-Cal plans would involve taking his or her name off of all community property accounts and/or transferring his or her separate accounts to the spouse who is ‘well’. Any excess resources above $2,000 for an individual, or $109,560 for a married couple, may be spent down by purchasing exempt or unavailable assets. Your home can be transferred to anyone of your choosing, not just your spouse, as long as it is an exempt asset at the time of transfer. This should be done as a step-transaction to avoid having the new owners pay unnecessary taxes along and capital gains. It is also possible to transfer income (i.e. pension benefits) to the well spouse.

Q: What is a Durable Power of Attorney?

A: The Durable Power of Attorney is the single most important document for Medi-Cal planning. This document will enable your agent to act on your behalf by implementing Medi-Cal strategies should you or your spouse require long-term nursing care.

Q: If I already have Medicare are my nursing home costs covered?

A: No. Medicare will only pay for skilled nursing care, not “custodial” care. Even then, Medicare usually only pays for the first 20 days. From days 21 through 100, you pay the largest portion of the bill, and after that Medicare stops paying all together.

Q: What assets can I keep while still qualifying for Medi-Cal?

A: You are allowed to keep your home, a car, and all exempt and unavailable assets.

Q: Can I transfer my assets to my family members in order to qualify for Medi-Cal?

A: Assets can be protected, but only in a special way. Medi-Cal has strict rules against improper transfers which result in a period of ineligibility of up to 5 years. Medi-Cal conducts a “look back” to different time periods to determine if any improper transfers have been made. Consult an experienced Medi-Cal Planning Attorney before attempting to transfer assets.

Q: Who can assist me in transferring or passing my assets to my heirs?

A: You should contact an Elder Law Attorney who understands the latest complex Medi-Cal rules and who can help you to both protect and preserve assets while still qualifying for Medi-Cal.

Q: Don’t we have to be living at the poverty level to qualify for Medi-Cal reimbursement of nursing home costs?

A: No. It’s a very common misperception that Medi-Cal is only available to low-income applicants. California residents with substantial assets can qualify for Medi-Cal and have their nursing home paid for by the state if they know how.

Q: Will I have to sell our family home to qualify for Medi-Cal?

A: Your family home is exempt for Medi-Cal eligibility purposes. However, it is most important to know that certain steps must be taken to prevent Medi-Cal from asserting an estate recovery claim against your home to later recover the amount of nursing home bills it paid on your (or your spouse’s) behalf.

Elder Law Services of California has an extensive background in Medi-Cal Planning, Estate Planning and Real Estate Law. They routinely assists those in need of creating or updating their wills, trusts, powers of attorney and other estate planning legal documents. The firm actively keeps their website up-to-date with the latest information and free resources pertaining to Medi-Cal Qualification and Medi-Cal Planning.

Most attorneys know very little about proper asset protection. Asset protection is a complicated specialization which requires that your attorney have in depth knowledge of tax law, trusts, wills, estate planning, corporations, and more.

As part of your search for the right asset protection attorney you should be prepared to ask each candidate the same questions before making a final decision. For example how much experience do they have? How long have they been providing asset protection services and is that what they specialize in? Do they offer a free consultation before you pay anything? Do they know about the latest changes in your state’s tax laws?

These are just a few of the questions you should consider asking when choosing an asset protection attorney. After you’ve narrowed down your choices you should ask the prospective attorney for a free consultation if they haven’t already offered one. This will give you a good idea about what is needed for your situation and how much it will cost to complete a proper asset protection plan.

Remember that only an attorney can provide legal adivce so you probably should not consider hiring an “asset protection specialist who is not also an attorney. Hiring an attorney ensures you of certain privileges like client-attorney confidentiality which is something an asset protection specialist cannot offer.

If you need to know more about how asset protection and estate planning can benefit you and your heirs then ask to speak to attorney Judd Matsunaga at Elder Law Services of California today for a free consultation. Call 1-800 403-6078

G. Bodine

• Is Medi-Cal different than Medicare?
• Do I give up Medicare benefits while on Medi-Cal?
• What kind of things can you do to protect your assets and still qualify for Medi-Cal?
• What about the stay-at-home spouse?
• Can you keep your home?
• Can the state place a lien on your home to recover costs of care in a nursing home?

Additional articles and information on Medi-Cal Planning by Judd Matsunaga can be accessed at the following sites:

• www.JuddMatsunaga.com
• www.JuddMatsunaga.net
• www.JuddMatsunaga.org
• www.Medi-Cal-Planning.net
• http://groups.google.com/group/medi-cal-planning

When it comes to estate planning, one of the most common concerns is how to properly manage estate taxes. Judd Matsunaga will help you plan for inheritance and all tax issues related to inheritance. Judd will make sure you have a plan that protects you and your family for years to come. Depending your your needs, we may use a combination of the following estate planning tools to define your estate plan:

• Wills: A simple will may be enough to protect your interests and provide for your family. We will let you know what a will can do for you.
• Trusts: There are a variety of trust options available for individuals and families, including revocable living trusts, irrevocable trusts, special needs trusts for the benefit of any disabled person, trusts for the benefit of children, and trusts for the benefit of pets.
• Financial Power of Attorney: By establishing a power of attorney, you can put your assets, finances, and even health care decisions in the hands of someone you trust.
• Advance Health Care Directive: You may reach a time when you are not in a position to make a decision regarding your own health care. By establishing a health care directive, you can make sure your best wishes are honored.
• Asset Protection: There are a variety of asset protection options beyond traditional wills and trusts. We can help you explore the possibility of incorporation or LLC and LLP formation for estate planning.
• Guardianships and Conservatorships: We help families obtain guardianships and conservatorships for loved ones who are no longer able to care for themselves and their property or make sound legal decisions.
• Durable Power Of Attorney: You may request that we draft a durable power of attorney which is awritten legal document that lets you esignate another person to act on your behalf, even in the event that you become disabled or incapacitated.

Probate

Probate is a legal process for settling an estate in accordance with the will of the deceased. Assets owned and registered in the individual name of the deceased that do not already have a beneficiary—including cash, investments, personal property, and real estate—make up what’s called the “probate estate.” These assets are controlled by the will and “pass through” the probate process in order for ownership to be transferred. All other assets “pass outside” the probate process.

Size of Estate

The manner in which estates are settled varies from state to state, but options also vary according to the estate’s overall value. A large estate generally involves having the state’s probate court validate the will or certify that the deceased died intestate which means ‘without a will’.

Settling a large estate also involves fulfilling other administrative matters, called “probating the estate.” Sometimes smaller estates can be settled through a more informal means of administration.

Judd Matsunaga is devoted to handling his clients’ advanced estate planning needs. If you have questions regarding the planning of your estate, or if you are about to start planning your estate, it is in your best interest to speak with a qualified attorney.

Call Judd Matsunaga, an experienced, estate-planning attorney at Elder Law Services of California today at (800) 403-6078 or send an e-mail to info@ elderlawcalifornia.com , and we will contact you to set up a free, initial consultation.

Because of the increasing costs of skilled nursing care, Judd provides expert legal advice on how to  qualifiy for Medi-Cal by using legal strategies to preserve assets through transfers, gifting and conversion.  Judd Matsunaga prepares all of the necessary legal documents to accomplish qualification and preservation.

Judd Matsunaga provides comprehensive  Medi-Cal Planning and Estate Planning services which provide you the opportunity to state your personal desires for health care and the handling of your financial affairs during your lifetime and to direct to whom your assets will be distributed upon your death. These services include the preparation of revocable living trusts to avoid probate, estate tax avoidance trusts, irrevocable trusts, wills, powers of attorney for financial affairs, medical directives, special needs trusts for disabled children or adults, and all the related documents required to ensure that your wishes and needs and taken care of.