You are missing the fact that unless your son falls within one of the narrow catagories of exemptions the transfer will trigger a penalty period if you make application for Medi-Cal within the next five years. It's not just about the taxes. That doesn't mean the transfer can't be done. You will just need to be prepared to deal with the consequences. Rather than forging ahead, you should consult with a good elder law attorney in your area who has experience in Medi-Cal planning.
You may want to check out Gene Osofoky's website www.lawyerforseniors.com. He is in Hayward and knows a great deal about the MediCal regulations regarding what MediCal considers "improper gifting" as well as the 30 month "look back" provision which may soon (or may have already) turned into a 60 month "look-back" provision which means MediCal can invalidate certain transfers within that 30 or 60 month period.
If you are currently receiving Medi-cal and own the home, it is exempt if you have plans to return to it...I assume when you say long term care that you are in a nursing facility and receive nursing hoe type Medi-cal...
If you transfer it to him at less than fair market value, you may be ineligible for your long term care.... At equity of $200,000 this could be a period of five or six years? How will you pay for your long term care for that long? I understand what you are wanting to do but understand that it would not be fair to the taxpayers for you to have your long term care paid by the taxpayer and not be able to recover this at a later time.
You need to consult with an attorney...
This is for general information only. Nothing in this information should be construed as creating an attorney-client relationship nor shall any of this information be construed as providing legal advice. Laws change over time and differ from state to state. These answers are based on California Law.Applicability of the legal principles discussed may differ substantially in individual situations. You should not act upon the information presented herein without consulting an attorney about your particular situation. No attorney-client relationship is established.
Medi-Cal planning is extremely complex and you need to speak with someone who practices in that area. I recommend you contact an attorney here in Sac to help you properly plan on not become disqualified based upon transferring assets to qualify yourself for benefits.
This is not legal advice and does not create an attorney-client relationship. This is not legal advice, it is only legal information. You should consult an attorney if you have any questions regarding this matter.