When a decedent dies without a valid Will in place the estate is referred to as an “intestate” estate. If you die intestate, the State of California (or the state where you reside at the time of your death) decides how your estate assets are distributed using the California intestate succession laws. Usually, this means that only close relatives will inherit from the estate. Moreover, dying intestate means you give up the ability to decide who oversees the probate of your estate. … [Read more...] about What happens if I die without a Will in place?
I’m too young to need a Will aren’t I?
One of the most common explanations people offer when questioned about the fact that they do not have an estate plan is the belief that they do not yet need one. They either think they are too young or not wealthy enough to need a plan. Every adult can benefit from having an estate plan in place though, without regard to age, marital status, or net worth. At a bare minimum, executing a Will ensures that the State of California will not determine what happens to your estate assets and prevents … [Read more...] about I’m too young to need a Will aren’t I?
What is a Last Will and Testament?
A Last Will and Testament is a legal document that is used to express an individual’s wishes with regard to his/her estate assets and what should be done with them upon the Testator’s (creator of the Will) death. Gifts made in a Will may be general or specific and may be made to as many different beneficiaries as the Testator wishes. Along with serving as a vehicle for making gifts of estate assets, a Will is the only opportunity the parent of a minor child has to nominate who the parent would … [Read more...] about What is a Last Will and Testament?
What is Medi-Cal planning?
Medi-Cal planning uses legal tools and strategies to protect your assets and ensure that you will be eligible for Medi-Cal if the need arises in the future. If you have not yet discussed the benefits of Medi-Cal planning with your estate planning attorney, now is the time to do so. … [Read more...] about What is Medi-Cal planning?
Will my spouse be left without income or resources if I need to qualify for Medi-Cal?
There was a time when this was the case; however, the Medicaid Spousal Impoverishment Rules now prevent that from happening. The Spousal Impoverishment rules allow a community spouse to keep some of the marital assets and, in some cases, some of the nursing home spouse’s monthly income to ensure that the community spouse is not left without sufficient income and/or resources. … [Read more...] about Will my spouse be left without income or resources if I need to qualify for Medi-Cal?
How long will the waiting period be if one is imposed?
The length of the waiting period is determined by dividing the amount of your excess assets by the average monthly cost of LTC in your area. For example, if you transferred an asset valued at $200,000, your assets exceed the limit by $198,000. If the average monthly cost of LTC in your area is $10,000, you would divide $198,000 by $10,000 which gives you a waiting period of 19 months (19.8 rounded down). During the waiting period, you will be expected to rely on your own assets to cover your LTC … [Read more...] about How long will the waiting period be if one is imposed?
If I know my assets will exceed the limit, can’t I just gift them to someone before I apply?
Because people regularly took advantage of this loophole, the Medicaid program implemented a “look-back” period. In most states, the look-back period is 60 months; however, California currently imposes a 30 months look-back period. The look-back rule allows Medicaid to review your finances for the designated period leading up to your application. Any asset transfers made during that time period for less than fair market value may trigger an eligibility waiting period. … [Read more...] about If I know my assets will exceed the limit, can’t I just gift them to someone before I apply?
What happens if my assets exceed the limit?
If your assets do exceed the limit, your application for Medi-Cal will be denied. At that point you will have to “spend-down” your excess assets. In essence, you will have to use your assets to cover your LTC bills until your assets are depleted enough to qualify. Your retirement nest egg you spend a lifetime accumulating could be gone in a matter of months. … [Read more...] about What happens if my assets exceed the limit?
Do all my assets count when determining my eligibility for Medi-Cal?
When determining your eligibility, only non-exempt assets are considered. Examples of exempt assets include: Your primary residence Household goods and furnishings One vehicle Term life insurance Burial plot … [Read more...] about Do all my assets count when determining my eligibility for Medi-Cal?
How do I qualify for Medi-Cal?
Along with basic requirements, such as citizenship and residency, your eligibility for Medi-Cal is determined, in part, by the income and asset limits imposed by the program. The income limits are tied to the Federal Poverty Level, or FPL. The FPL, in turn, changes each year and is determined by your household size and geographic area. The “countable resources” limit refers to the value of your non-exempt assets. In most states the countable resources threshold is only $2,000 for an individual, … [Read more...] about How do I qualify for Medi-Cal?
