My mom already has medi cal but the house is still under her name and she wants to create a trust to protect from medi cal asset recovery . I’m worried if a trust is created , that would revoke her medi cal benefits ? I read that if a trust is created that would trigger medi cal look back period of the last 30 months? Is a trust with a home that she wants to pass to her sons be considered in this look back period and she could lose her benefits ? Or is this look back period only something considered when applying for medi cal and not on someone who already has medi cal? My mom has terminal cancer and right now I’m worried she will lose her benefits ...
The Lookback period is triggered by the need for Medi-Cal not by the placement of the home into a trust. The Medi-Cal benefits that trigger the trust are nursing home care, so if your mother is not in a nursing home the sooner you do this the better.
This is general advice. You are anonymous. If you PM me i won’t know what it’s about.
When you apply for Medi-Cal, your home is exempt as long as you state that you’re going to return to it, so its value is not considered when they determine your assets. In other words, when you’re applying for Medi-Cal or if you’re on Medi-Cal, they don’t consider the value of your home in those numbers. You are obligated to tell Medi-Cal that you have a home in the application, but you don’t have to provide the value for it. Under the regulations of Medi-Cal you only need to have an intent to return home, not the capability to return home. That said, the placement of a home in a living trust is somewhat of an independent issue. Using an irrevocable trust as part of your Medi-Cal planning for example, can help you to qualify for Medi-Cal. When you make the transfer of property, you effectively deplete your estate of disposable assets, although the trust can provide you with income produced from the assets it holds.
DISCLAIMER: Please be advised that this communication does not establish an attorney-client relationship. The information provided by WFB Legal Consulting is disseminated for educational purposes only, and is not to be construed as legal advice. Do not take any action, postpone any action, or decline to take any proposed action based on this information without first engaging the representation of a licensed attorney at law in your State of residence.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline