Why Choose Law Offices of Rozsa Gyene for Medi-Cal Planning?
Medi-Cal Planning in California
Medi-Cal planning is a strategic approach to protecting your assets while qualifying for Medi-Cal benefits to cover long-term care costs. In California, nursing home care can cost $12,000 to $15,000 per month or more. Without proper planning, these costs can rapidly deplete a lifetime of savings.
Medi-Cal is California's Medicaid program that pays for long-term care for those who qualify. However, strict asset and income limits apply. Since January 1, 2026, the Medi-Cal asset limit is $130,000 for one person plus $65,000 for each additional household member. Under the 2026-27 state budget, the limit drops to $21,000 for an individual and $31,000 for a couple beginning July 1, 2027. Your home, car, and certain other exempt assets do not count toward the limit.
Our Medi-Cal planning services help you legally restructure your assets to meet eligibility requirements without sacrificing your family's financial security. We navigate the complex rules around asset transfers, the phased-in look-back period, spousal protections, and estate recovery to create a comprehensive plan tailored to your situation.
Whether you're planning ahead or need immediate assistance, we help protect your home, preserve assets for your spouse and heirs, and ensure you receive quality care without the financial devastation that often accompanies long-term care needs.
2026 California Medi-Cal Rules: What's Changed
California eliminated the Medi-Cal asset test on January 1, 2024, under AB 133 (2021), and reinstated it on January 1, 2026, under AB 116 (2025) (DHCS ACWDL 25-18). Planning now has to address both qualifying and protecting assets from Estate Recovery.
2026 Asset Limit (Individual)
2026 Asset Limit (Couple)
Full Look-Back from July 1, 2028
Monthly Nursing Home Cost
Key Change: Since January 1, 2026, the Medi-Cal asset limit is $130,000 for one person plus $65,000 for each additional household member. Under the 2026-27 state budget, the limit drops to $21,000 for an individual and $31,000 for a couple beginning July 1, 2027. The state can also seek Estate Recovery from assets that pass through probate after death, so planning has to protect your home and assets from post-death claims.
Warning: Medi-Cal Estate Recovery: The Hidden Risk
After you pass away, DHCS can file a claim for long-term care benefits paid after age 55 against assets that pass through probate, including your home if it is not held in a living trust (Welfare and Institutions Code section 14009.5, as amended by SB 833). There is no claim if you are survived by a spouse or registered domestic partner. This can devastate your family's inheritance.
Hypothetical Example: The Same Home, Two Outcomes
- Mom receives 4 years of nursing home care through Medi-Cal
- Monthly cost used for illustration: $15,178 (CareScout 2025 California median, private room)
- Total benefits paid: 48 months x $15,178 = $728,544
- Mom's home value: $800,000
- (a) Home in Mom's name alone: it passes through probate, DHCS can file a recovery claim for $728,544, and the children inherit about $71,456 before probate costs
- (b) Home held in a funded living trust: it passes outside probate, there is no recovery claim, and the children inherit the full $800,000
With proper planning, we can structure your assets to minimize or eliminate Estate Recovery claims. Whether your home is in Montecito or the San Fernando Valley, we make sure your property passes outside probate and is protected from Medi-Cal estate recovery claims.
The Long-Term Care Cost Crisis in California
The cost of long-term care in California is staggering. These are the 2025 California median private-pay rates from the CareScout Cost of Care Survey:
| Care Level | Monthly Cost | Annual Cost | 5-Year Cost |
|---|---|---|---|
| Nursing Home (Private Room) | $15,178 | $182,135 | $910,675 |
| Nursing Home (Semi-Private Room) | $12,167 | $146,000 | $730,000 |
| Assisted Living | $6,900 | $82,800 | $414,000 |
Source: CareScout 2025 Cost of Care Survey, California median rates. Actual costs vary by facility and region.
The Math is Brutal: At the California median for a private nursing home room, $500,000 in savings would be gone in under three years. Medi-Cal planning preserves your assets for your spouse and heirs.
The Medi-Cal Look-Back Period (Phased In 2026 to 2028)
Transfers made from January 1, 2024 through December 31, 2025 are not reviewed and cannot cause a penalty. For applications starting July 1, 2026, Medi-Cal reviews only months from January 1, 2026 forward, adding one month each month, and the full 30-month look-back applies to applications filed on or after July 1, 2028 (DHCS ACWDL 25-18). A penalty period, months during which you are ineligible for benefits, applies only if, at the time of the transfer, you were over the asset limit and transferred nonexempt assets worth more than the statewide average private pay rate ($14,440 per month in 2026, DHCS ACWDL 26-03). The presumption that a transfer was made to qualify for Medi-Cal can be rebutted, undue hardship is reviewed first, there are no partial-month penalties, and the maximum penalty is 30 months.
Triggers Penalty
- Gifting money to children within the look-back window
- Transferring home to family members
- Paying off children's debts
- Selling assets below fair market value
- Adding children to deed without consideration
Exempt Transfers
- Transfers to spouse (any amount)
- Transfers to disabled child
- Home transfer to caretaker child (lived in home 2+ years)
- Home transfer to a sibling who has an equity interest in the home and lived there for at least one year before the transfer
- Transfers made outside the look-back window, including any made in 2024 or 2025
Critical Timing: The best time for Medi-Cal planning is well BEFORE you need care, so transfers fall outside the look-back window, which reaches the full 30 months on July 1, 2028. However, even crisis planning (when care is imminent) can save significant assets. Contact us immediately if a loved one is facing nursing home placement.
Protecting Your Home from Medi-Cal Estate Recovery
Your home is often your largest asset. Here are the legal strategies we use to protect it:
Irrevocable Trust
Transfer home to an irrevocable trust early enough that the transfer falls outside the look-back window. A home held in a funded living trust, or transferred under an exempt transfer, passes outside probate and is not subject to Medi-Cal estate recovery.
Caretaker Child Exception
If a child lived in your home and provided care for 2+ years that delayed nursing home placement, the home can transfer to them without penalty.
Spousal Protection
When one spouse needs care, the home is protected while the "community spouse" lives there. We structure assets to maximize spousal allowances.
Life Estate Deed
Transfer the "remainder interest" while retaining a life estate. Complex timing rules apply—this must be done well in advance.
Medi-Cal planning is most effective when paired with a comprehensive trust. If you are already serving as a fiduciary for a senior, visit our Trust Administration Hub to see how benefit eligibility affects trust distributions.
If your loved one receiving Medi-Cal also has a disabled family member who may inherit, we must coordinate with a Special Needs Trust to ensure the inheritance doesn't disqualify them from their own government benefits.
Medi-Cal Planning vs. General Asset Protection
| Feature | Medi-Cal Planning (This Page) | Asset Protection |
|---|---|---|
| Primary Goal | Qualify for nursing home benefits | Shield assets from lawsuits |
| Threat | DHCS Estate Recovery liens | Creditors, lawsuits, judgments |
| Timing Rules | Phased-in look-back (full 30 months from July 1, 2028) | Before any claim arises (UVTA) |
| Target Client | Seniors 65+, families with aging parents | Business owners, landlords, high-risk professions |
| Key Structures | Irrevocable trusts, spousal transfers, caretaker exceptions | LLCs, charging orders, equity stripping |
Note: Some clients need BOTH types of planning—Medi-Cal planning for long-term care AND asset protection for lawsuit defense. We coordinate both strategies when appropriate.
Warning: Crisis Medi-Cal Planning: When Care is Imminent
Even if your loved one is already in a nursing home or about to be admitted, there are still strategies available:
- Spousal Asset Preservation: Maximize the "Community Spouse Resource Allowance" (up to $162,660 in 2026, DHCS ACWDL 26-02)
- Income-First Rule: Structure assets to convert countable resources to income streams
- Caretaker Child Exception: If applicable, transfer home immediately
- Exempt Asset Purchases: Convert countable assets to exempt assets (pre-paid funeral, home improvements, car)
- Spousal Refusal: In some cases, a spouse can refuse to make assets available
If a loved one has already lost capacity and did not have a Medi-Cal plan in place, you may need to visit our Conservatorship page to understand how the court handles care decisions at Stanley Mosk (LA) or Anacapa Division (Santa Barbara).
Don't wait: Every day in a nursing home without Medi-Cal costs $400+. Call us immediately at (818) 337-4071 for a crisis consultation.
How Medi-Cal Planning Protects Your Family
Protect Your Home
Keep your family home safe from Medi-Cal recovery through strategic planning with irrevocable trusts, life estates, or proper transfers to family members.
Preserve Assets
Legally shelter your savings, investments, and property from spend-down requirements while maintaining Medi-Cal eligibility for long-term care coverage.
Spousal Protection
Ensure your healthy spouse maintains financial independence with proper income and asset allocation strategies under spousal impoverishment rules.
Navigate Look-Back Rules
Understand and comply with California's phased-in look-back period to avoid penalties and delays in benefit eligibility.
Avoid Estate Recovery
Implement strategies to protect your estate from Medi-Cal recovery claims after death, preserving your legacy for heirs.
Quality Care Access
Secure coverage for nursing home, assisted living, or in-home care without depleting family resources or sacrificing care quality.
Our Medi-Cal Planning Process
Asset Assessment
Review your complete financial picture and care needs timeline
Strategy Development
Create customized plan to protect assets and maximize eligibility
Document Preparation
Draft trusts, transfers, and legal documents to implement your plan
Application Support
Guide you through Medi-Cal application and approval process
Frequently Asked Questions
Medi-Cal Planning Service Areas
We provide Medi-Cal planning for seniors and families throughout Southern California:
Los Angeles County:
Glendale, Burbank, Pasadena, Los Angeles, Santa Monica, Tarzana, Woodland Hills, Encino, Sherman Oaks, Arcadia, Alhambra, Monterey Park, West Covina
Santa Barbara County:
Santa Barbara, Montecito, Goleta, Carpinteria, Santa Ynez Valley
Medi-Cal Application Offices:
We assist with applications to DPSS (LA County) and DSS (Santa Barbara County) and can represent you in fair hearings if benefits are denied.
Related Services: Living Trusts | Special Needs Trusts | Conservatorship | Trust Administration
Protect Your Assets Today
Don't wait until it's too late. Start planning now to protect your family's financial future.
Schedule Free ConsultationSpeak with a Medi-Cal Planning Attorney:
(818) 337-4071 Text Us: (833) 846-1175