Protecting your home from a Medi-Cal lien is possible based upon a new California law which took effect January 1 of this year. Previously, California’s Medi-Cal program was able to recover money from people who were 55 years or older who received medical services under agency programs. If the family of the Medi-Cal recipient was unable to pay the patient’s bills after their passing, Medi-Cal could place a lien against the patient’s home.
The new California law prevents Medi-Cal from being able to place a lien against a patient’s home if it is protected under a valid living trust. The estate planning, trust and tax attorneys at Allen Barron can help you to establish or review a trust that will protect your home, assets, investments and financial accounts from probate. This protection now extends to medical costs you may receive in the future under California’s Medi-Cal program.
Without an effective Allen Barron estate plan including applicable revocable and irrevocable trusts, most San Diego homeowners are not aware how expensive the probate process is. Probate costs are based upon the value of an asset and not the equity. The cost of taking an average San Diego home ($500,000 appraisal) can be $27,000 or more. Probate will also tie up the asset for more than a year. In the case of a Medi-Cal recipient, your medical costs would be deducted from the proceeds of the sale of your home and any other assets before your estate is distributed to your heirs and beneficiaries.
The estate planning and trust attorneys at Allen Barron can help you to put a stop to this. The assets in your trust do not pass through probate. They do not incur the costs or vulnerability to Medi-Cal or other creditors which a probated asset would face. Your beneficiaries will receive access to the assets in a matter of days.
Let Allen Barron’s skilled trust, estate planning and tax attorneys help you to update your present trust or establish a living trust as part of a customized estate plan. Maximize the amount of your hard work and assets which will survive to be passed to your beneficiaries and heirs. Learn how to protect yourself, your family and the causes you care so much about. We invite you to contact us for a free consultation at 866-631-3470.
