If you’re like most people who have a loved one in a nursing home, you think that you have to disinherit your loved one for fear of disqualifying her from having her nursing home care paid for by MediCal. Great news! You don’t have to disinherit your beneficiary. Asset protection planning can avoid disqualification.
Where to get help
Call our estate planning law office at (858) 792-5988 for a free estate planning/asset protection planning consultation. We’d be happy to assist you.
Gifts that will disqualify your beneficiary from MediCal and waste your assets
Any outright gift/inheritance or poorly worded trust will disqualify your loved one from MediCal. And, your gift/inheritance would be used to pay for nursing home costs until it was used up. Then, your loved one would have to reapply for MediCal benefits. Your assets would be wasted.
If you would like to leave your loved one an inheritance, you can include asset protection provisions that will prevent MediCal disqualification.
If you would like to give your loved one a gift during your lifetime, you can purchase gifts directly such as a new television, satellite radio, trip, special lift chair, and the like. Or, if it is large gift, you can set up a trust (aka “special needs trust.”)
Special trust language
To create this asset protection for your assets and not disqualify your beneficiary from MediCal, important language will be included in your trust. The directions will indicate that your gift is to pay for things that MediCal will not pay for, not anything that MediCal will pay for.
If you have questions about not disqualifying your beneficiary from receiving MediCal, please feel free to telephone our estate planning law office at (858) 792-5988. We’d be happy to assist you.