One of the most common questions posed to Medi-Cal Planning Attorney Judd Matsunaga is, “What can we do to protect our family assets and still qualify for Medi-Cal?”

Under Medi-Cal rules, the spouse who needs care is allowed to keep only $2,000.  In compliance with these rules, Medi-Cal plans commonly involve the transfer of assets out of community or joint tenancy accounts and into separate accounts in the name of the spouse who is well.  Any additional resources in excess of $2,000 for an individual, or $109,560 for a married couple,  may be spent down by purchasing exempt or unavailable assets.

The family home can be transferred to anyone, not just a spouse, as long as it is an exempt asset at the time of transfer.  This transfer requires a step-transaction to avoid having the new owners pay unnecessary taxes along and capital gains. The step-transaction documentation should be handled by a qualified Medi-Cal Planning attorney like Judd Matsunaga of Elder Law Services of California.  Additionally, Elder Law Services can assist in the transfer of income (i.e. pension or retirement benefits) to the  spouse who is well.