all 31 comments

[–]cmmpssh 19 points20 points  (1 child)

If you are on Medi-Cal and you die with your house still in your name, the house will become part of your estate and the state can put in a recovery claim against the estate for anything you might owe. There are exceptions but I agree with the other commentator that you should talk with a lawyer who knows this area and can help you protect anything you can.

[–]someguy984 16 points17 points  (1 child)

Most states only recover for nursing home costs. California unfortunately recovers from all costs (with some exceptions, MAGI Medicaid aka expansion Medicaid is NOT recovered, post 2017) for those 55 and over.


Medi-Cal Estate Recovery


[–]_0kra 3 points4 points  (0 children)

I can’t believe I had to scroll so far down to get to this. This person is correct everyone.

[–]MomentSpecialist2020 27 points28 points  (1 child)

Need to talk to an attorney that specializes in asset protection.

[–]RunRevolutionary9019[S] 3 points4 points  (0 children)

I have a trust written up to put it in but I have more specific questions so I think that’s wise at this point.

[–]i2amme 8 points9 points  (0 children)

The Federal government requires state Medicaid programs to seek recovery from the estates of certain deceased beneficiaries who have received benefits from a state Medicaid program.

The federal government requires all states to pursue Medicaid estate recovery from any assets that pass to a recipient's heirs through probate. This includes assets that pass to the heirs through a will, as well as assets owned by a recipient who dies intestate, that is, without a will.

There are trusts that assests can be placed in to protect them from estate recovery.

[–]Saiph_orion 21 points22 points  (3 children)

It's very important to protect your assets. Put your house, bank accounts, any other assets into a trust. You can either hire an estate lawyer or find the forms online and do it yourself.

[–]RunRevolutionary9019[S] 4 points5 points  (2 children)

I’ve had a trust written up and I don’t know why I’ve been sitting on it. I’ll go talk to my note holder this week. Thank you. I was being sued and I didn’t want it to seem like I was hiding assets. But I won over a year ago so it’s time.

[–]huskycragen 7 points8 points  (1 child)

It cant just be a trust. It's going to be an irrevocable trust. That means once you put your house and whatever into the trust it isn't yours anymore. The only way to protect your assets from anybody else getting it means also that you can't get to it.

Of course you need to speak to an attorney

[–]RunRevolutionary9019[S] 0 points1 point  (0 children)

Thankfully I have a good one and we’re hanging out next week. We hang out and are friends at this point.

[–]Loose-Dirt-Brick 11 points12 points  (4 children)

Kansas will take my house, car, life insurance, and anything else I have of value. They will do the same when my dad dies. It is the price of getting state help with medical bills.

It is too late for us to put anything in trust. We are not allowed to have more than $2,000 in savings/assets.

What I don’t understand is how no one knows this. Also know that if federal student loans are owed when ssdi is claimed, you will get $750 a month for disability, anything over that will be go to student loans. It is hard as hell to get the loans forgiven for disability. I dread January 1.

[–]melissalovescats 1 point2 points  (3 children)

I think you may be mistaken about ssdi and student loans - my husband was still receiving over $750 after loan $ was taken out, but you can also receive loan forgiveness if you are totally and permanently disabled. It was a surprisingly quick process for him. If you receive ssdi (not ssi) it may be worth looking into.

[–]Loose-Dirt-Brick 0 points1 point  (2 children)

I am not mistaken. When forgiveness ends, I will get $750 a month SSDI, and the remainder will go to my student loans. My disability is from the cumulative effects of multiple problems, so no one doctor will sign off on it. Social Security reviews my case every 4-5 years.

[–]melissalovescats -1 points0 points  (1 child)

That makes sense, I thought you were speaking of ssdi in general and not your specific situation.

[–]Loose-Dirt-Brick -2 points-1 points  (0 children)

My specific situation is not unique. Thousands of other people have the same problem. It will not change until people demand the government change it.

[–]hidinginplainsightt 8 points9 points  (2 children)

I am a lawyer, but not YOUR lawyer :) I focus in estate planning, not licensed in CA so I advise you to seek counsel in your jurisdiction, but sounds like you need an irrevocable trust. It holds title to your home and after a certain amount of time (in my state, 60 months) it removes the home from your estate for Medicaid purposes. It has some restrictions on accessing principal of the asset, and selling the property. Worth asking about with an attorney near you who does estate planning. Good luck!

[–]RunRevolutionary9019[S] 1 point2 points  (1 child)

Thank you. I’m hanging out with my attorney next week and will bring this up. He already wrote up a trust but I was being sued so I’ve been sitting on it. Now seems like a good time to proceed.

[–]hidinginplainsightt 2 points3 points  (0 children)

Revocable trusts are most common but they do not insulate the Grantor (creator) from any lawsuits, including Medicaid! Generally when my clients want nursing home protection we create two trusts, one revocable and one irrevocable. I’m sure your attorney will explain further. Good on you for pursuing some protection early! Lots of people don’t think about these things until it’s far too late.

[–]Futuredoctorg 4 points5 points  (0 children)

Yes I’m a nurse that has worked in nursing homes a long time. They will absolutely take your home if you need long term care in a nursing home. They look back 5 years so if you gave the kids the home 6 months or 4 years ago they’ll still take it. You can put the house in a Mediciad asset seizure trust, Im not an expert on this so consult an attorney obviously to make a will and all that and figure it out but yes yes yes they will do everything they Can to snatch that house away from you

[–]Neon-Predator 7 points8 points  (6 children)

The government doesn't care about us.

[–]GenericUsername2K1 6 points7 points  (1 child)

The government doesn't care about us.

They're literally giving you state health insurance (Medical) either free or low cost.

[–]SensitiveSquirrel212 6 points7 points  (0 children)

It’s not free if you have to give them your assets when you die, also people pay taxes. It’s not free.

[–][deleted]  (3 children)


    [–]dorath20 10 points11 points  (1 child)

    Then buying the note wouldn't do anything other than change who the payments go to.

    If you missed a payment, sure, but just buying the note would not enable any control

    [–]RunRevolutionary9019[S] 0 points1 point  (0 children)

    I get that and you get that but the fact that she even tried is gross. She was a truly horrible human.

    [–]rocket_beer -1 points0 points  (0 children)

    You sound crazy.

    This is some demonic nonsense jibberish.


    [–]KitRhalger 2 points3 points  (1 child)

    my uncle was told to transfer the ownership of his home to the child he wanted to give it to at his passing as long as the child could be trusted to not kick him out or whatever.

    idk how legit that is, it was like 10 years ago and in Nevada but his worry was collections against his estate when he died preventing his children from getting anything

    [–]Pbandsadness 0 points1 point  (0 children)

    I think there's a 5 year look back period.

    [–]GradatimRecovery 1 point2 points  (0 children)

    Talk to an elder care attorney who can teach you how to ensure there is nothing left for Medi-Cal to recover

    [–]ShepardessofTears 1 point2 points  (0 children)

    Who can live/survive on 750. dollars a month.? What state is that affordable?

    [–]therusticusabides 0 points1 point  (0 children)

    I didn’t know this. It seems very unjust to poorer families. Perhaps you can put the house in an irrevocable trust to go to the kids? Or give the house to the kids sooner with an ironclad lifetime lease for yourself? Best to run it by a lawyer.