How Do I Protect My Home from Medi-Cal Recovery? | #AskAmity Episode 4Feb 23, 2022
- Hello everyone and welcome to the new
episodeof Ask Amity Show. I'm Edmund. - I'm Jennifer. - I'm Cindy. - We are Alameda LLP in Rosemead, California. - For today's topic, we'll talk about how to
homefrom Medicaid estate
recovery. So before we talk about that, I think we need to tell the audience if they don't know what Medi-Cal is. - Medi-Cal, I think we can generalize, Attorney Jennifer Fu, but Medi-Cal is basically a government subsidy for certain low-income people. Also, there are some requirements to qualify for Medi-Cal, but once you qualify, you get benefits and then you die, tip: not all Medi-Cal is free.
California has the right to collect from your assets to pay for the services you used when you die, then Medi-Cal has the right to recover from your consumption. So that could mean getting back the house you own and some of the assets you might still own after death. So sometimes, obviously, the client wants to avoid that
recoverybecause it means giving the beneficiaries, children, or the family has little remaining resources. . So when they come to us and they're concerned about this, we use certain tools to prevent this type of recovery. Tip: Plan to
protectyour family from Medi-Cal recovery; therefore, one of the greatest tools at your disposal, a very useful tool from attorney Sandy Nguyen, is to mortgage her house in her trust to ensure that her trust is maintained.
homemeans that Medi-Cal cannot recoup and recover the money you received from Medi-Cal after her death. Basically, it keeps the house intact. Tip: Putting the house in a trust saves you from Medi-Cal repossession and then passes it on to the children. - Yes, this is a fairly new regulation in California. Edmund Yan Lawyer I think it was approved last year, right? - Yes, it's a very smart way to make sure that you or your parents can get the Medi-Cal benefits you're entitled to from the state, while protecting the inheritance rights of your parents' children.
Because yes, if you don't plan ahead Tips: Your children will lose their inheritance due to the reinstatement of Medi-Cal If you don't, put your house in a trust, like Jennifer said, when you die, California has the right to place a lien on the property, your home, and to recover
medical bills that Medi-Cal paid for you. For some, a lot. For example, it's not uncommon for Medi-Cal bills to exceed $500,000 or even $1 million. So if your house is worth $5 million or $1 million, you'll have to pay the
medical bills, and California is entitled to get that money back from the assets you own, which means your children could lose their inheritance.
They may need to sell their home and move to pay their Medi_Cal bills. - Yes, and many times our clients think, why not, why can I give assets before I qualify and start receiving assets from Medi-Cal? Tip: Avoid trying to transfer assets to your child, it creates risks. Seek the professional advice of your attorney. But there is a big problem with this. You, if you want to keep your property, a lot of people want to be able to keep control of their assets and they're not quite ready to transfer ownership to minor children or adult children, you know, they just for whatever reason, they're not ready to transfer it, so that's one way to stay in control. - And I think, as Sandy said, there are a lot of clients who worry about control, but now, since the new law passed in California, if you can put it in your trust, and it's a revocable trust, then you can still sell the property at any time and you can still do what you want with your life.
So it's not really out of control. Tip: With a trust fund, you have complete control over the estate and Medi-Cal benefits. If you give it to your son now, your son can technically kick him out of the house. OK And sell the house without your authorization because you have given them the gift. So I think having this approach not just to know, not just to be in control, to avoid Medi-Cal recapture, but also to be able to save and preserve assets and give them to whoever you want. - Yes, as long as you're alive, the other problem with transferring the house to the children is, what if they have an accident and the victim sues them for 1 million, 2 million dollars?
You know that any judgment against a child can be entered on your property, which is your home. Therefore, you may end up losing your home because of this lawsuit. Tip: If you transfer the property to your child without a trust, your child's creditors may come to your home to collect your child's debts. So I think the point of this
episodeis to make sure you have a trust and put your house in a trust, especially when you use Medi-Cal, so you have control for life. When you leave, your children will be able to inherit your assets and your household will not have to go to California to pay your Medi-Cal bills. arise during this period.
Well, I think that's what this episode is about. Thank you very much for joining us. If you have any other questions about estate planning, please leave a comment below and we'll try to answer them in the next episode. LIKE MESSAGE SUBSCRIBE
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