Recent changes to Medi-Cal eligibility rules are affecting how people plan their estates and use living trusts in California. These changes can change how people organize their assets to qualify for benefits and protect their loved ones.
It is important to understand these new rules to make smart choices about estate planning.
New Medi-Cal eligibility rules
Medi-Cal has updated its rules for who can qualify, especially about income and asset limits. These changes can impact how assets are moved or held in a living trust. In the past, people often used irrevocable trusts to protect their assets and qualify for Medi-Cal. With the new rules, some assets that used to be exempt may now count against eligibility, making it harder to qualify.
Impact on California living trusts
Living trusts are often used in estate planning to avoid probate and manage assets while a person is still alive. With the new Medi-Cal rules, people need to rethink how they organize their assets in a living trust. Some assets in a living trust may now affect Medi-Cal eligibility, which means it is important to review and possibly update trust documents to keep benefits.
Estate planning tips
Because of these changes, it is very important to work with an estate planning lawyer who knows California law and Medi-Cal rules. A lawyer can help decide if you need to make changes to your living trust. They can also suggest other options, like setting up a special needs trust or using other tools to protect assets while still qualifying for Medi-Cal.
Moving forward with the new Medi-Cal rules
Adjusting to the new Medi-Cal rules means careful planning. Reviewing and updating estate plans can help people protect their assets and stay eligible for the benefits they need.