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Medi-Cal Estate Recovery & How To Avoid It

Medi-Cal laws and regulations are a complicated matter, and it can leave beneficiaries confused about their rights. Many people may have heard horror stories about the State making a claim on a deceased beneficiary’s home, and that thought alone could be enough to dissuade a person from using Medi-Cal as a long-term care option. However, if a Med-Cal beneficiary has the right set of advisors, the process of estate recovery can be avoided entirely.  Let’s take a closer look at Medi-Cal recovery, what happens when a beneficiary passes away and figure out how to prevent any worst-case scenarios.

What Happens After I Die If I Received Medi-Cal?

A Medi-Cal beneficiary’s home is considered an exempt asset while they are alive, however, once the beneficiary passes away, the home becomes subject to the recovery process if the property is still in the former beneficiary’s name. “If your home or any part of it is still in your name when you die, it is part of your "estate" and can be subject to an estate claim”. The State has the authority to make claims against the estate of a former beneficiary who received Medi-Cal at the age of 55 years or older or against those beneficiaries who (at any age) received Medi-Cal benefits in a nursing home unless the former beneficiary has a surviving spouse or minor, blind or disabled child.

How Much Can the State Recover?

The State is limited in the recovery process and can only retrieve the exact amount paid in Medi-Cal benefits or the value of the beneficiary’s estate (whichever is less). If a deceased beneficiary left an estate valued at $500,000 but only received $100,000 in Medi-Cal benefits, the State would not be entitled to the entire amount the estate’s is worth. On the opposite end, if a person received $500,000 in Medi-Cal benefits and left an estate of $100,000 the debt would be wiped clean with that amount.


What is IHSS

In Home Supportive Services is a program that is covered within the Medi-cal benefits program that allows beneficiary who are home to have a care taker come to the home for a number of hours a week to help with daily chores such as cleaning, cooking, bathing, etc.

How Do I Avoid an Estate Claim?

The best and only way to avoid an estate claim is by leaving nothing in the estate. A beneficiary’s home continues to be exempt in the Medi-Cal qualifying process, however, if the property is not transferred out of that person’s name before death, the property becomes subject to the recovery process by the State. The key is to transfer any property out of a beneficiary’s name while they are still living. Of course, any transfer of property will be subject to tax regulations and any person considering such an action should first consult with an experienced Medi-Cal planning attorney.

Visit Elder Law Services For a FREE Consultation Today!

Our team at Elder Law Services of California specializes in providing our clients with many legal options to help avoid probate, tax issues, and estate claims. If you are dealing with the Medi-Cal planning process and would like to speak with an expert advisor, give us a call at (855) ELDER LAW for a FREE consultation today! We are ready to help meet your Medi-Cal Planning needs.


Serving Our Community Since 1995

Elder Law Services of California, APLC provides the same strategic planning and legal representative of larger firms, yet in a personalized, family-like manner. Our priority is to provide the highest level of legal services and client satisfaction when representing your Medi-Cal Planning, Estate Planning, Trust Administration, or Probate cases. Above all, we understand the importance of you and your family’s financial future and legal security.

Our team of Attorneys and legal support staff have assisted thousands of different families by giving them the freedom to plan for the security of their future, while also providing peace of mind with our experienced legal advice. As our name, Elder Law Services of California, APLC serves all families in California, with convenient locations throughout Los Angeles, as well as locations in Northern California, and San Diego.

Whether you need to qualify for Medi-Cal, pay for long-term care, create an estate plan and powers of attorney, proceed a conservatorship, protect your assets, or deal with the loss of a loved one, our team is there for you every step of the way. Sadly, many families are unprepared for any significant planning for their future, so take the first step today to protect your family’s integrity.

Elder Law Services  of California, APLC.
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