Why Choose Law Offices of Rozsa Gyene for Medi-Cal Planning?
Medi-Cal Planning in Los Angeles & Santa Barbara
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 $10,000-$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. To be eligible, you generally cannot have more than $2,000 in countable assets as an individual (or $3,000 as a couple), excluding your home, car, and certain other exempt assets.
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 30-month 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.
2025 California Medi-Cal Rules: What's Changed
California has dramatically expanded Medi-Cal eligibility. However, the focus has shifted from qualifying to protecting assets from Estate Recovery.
2025 Asset Limit (Individual)
2025 Asset Limit (Couple)
Look-Back Period
Monthly Nursing Home Cost
Key Change: With the elimination of the asset test for many Medi-Cal programs, the state is now aggressively pursuing Estate Recovery—recouping costs from your estate after death. Planning now focuses on protecting your home and assets from post-death liens.
Warning: Medi-Cal Estate Recovery: The Hidden Risk
California's Department of Health Care Services (DHCS) can place a lien on your home and recover ALL Medi-Cal benefits paid on your behalf after you pass away. This can devastate your family's inheritance.
Example: $500,000 Recovery Claim
- Mom receives 4 years of nursing home care through Medi-Cal
- Average monthly cost: $12,000
- Total benefits paid: $576,000
- Mom's home value: $800,000
- DHCS files lien for $576,000 after Mom passes
- Children must sell home or pay off lien before inheriting
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 ensure your property is protected from state liens.
The Long-Term Care Cost Crisis in California
The cost of nursing home care in Los Angeles and Santa Barbara Counties is staggering:
| Care Level | Monthly Cost | Annual Cost | 5-Year Cost |
|---|---|---|---|
| Skilled Nursing Facility (Private Room) | $12,000 - $15,000 | $144,000 - $180,000 | $720,000+ |
| Skilled Nursing (Semi-Private) | $10,000 - $12,000 | $120,000 - $144,000 | $600,000+ |
| Assisted Living | $5,500 - $8,000 | $66,000 - $96,000 | $330,000+ |
| In-Home Care (Full-Time) | $8,000 - $12,000 | $96,000 - $144,000 | $480,000+ |
The Math is Brutal: Without Medi-Cal, a typical senior could exhaust a $500,000 life savings in just 3-4 years of nursing home care. Medi-Cal planning preserves your assets for your spouse and heirs.
The 30-Month Look-Back Period
California's Medi-Cal program reviews all asset transfers made within 30 months before applying for benefits. Transfers during this period can result in a penalty period—months during which you're ineligible for benefits.
Triggers Penalty
- Gifting money to children within 30 months
- 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 sibling with equity interest
- Transfers made more than 30 months ago
Critical Timing: The best time for Medi-Cal planning is at least 30 months BEFORE you need care. 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 more than 30 months before needing care. The home is protected from Estate Recovery because it's no longer in your estate.
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 | 30-month look-back period | 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 $154,140 in 2025)
- 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) 291-6217 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 30-month 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) 291-6217