Medi-Cal Recovery Only Against Probate Estate for Long Term Care Costs by Kevin Staker
We have had some time now to digest the 2016 California State Budget Act and its limitations on
recovery by the California Department of Health Care Services ("DHCS") arising
out of services from Medi-Cal.
The key point that surfaces is that DHCS can only recover against a probate estate. Futher, tt can only recover for nursing home facility and long term care services provided
after age 55 or any age if the person was “permanently
institutionalized”.
Hence, a living trust of a decedent avoids recovery. This is another clear advantage of living trusts for estate planning.
Joint tenancies will also escape recovery; but they can be very crude in their disposal on assets. Especially because a co-tenants creditors can go after their share of the asset. A living trust avoids that.
Please note these changes are effective for individuals who die on or after January 1, 2017..
For an explanation further in depth, go to the site of the California Advocates for Nursing Home Reform at http://www.canhr.org/factsheets/medi-cal_fs/html/fs_medcal_recovery_FAQ.htm.
By Kevin Staker
No comments:
Post a Comment