The New Medi-Cal Recovery Laws
For individuals who die prior to January 1, 2017, the current recovery rules will apply, however, a new day will arise starting January 1, 2017. Starting January 1, 2017, homeowners will longer have to choose between healthcare or passing their home to their children. CANHR has provided a booklet which outlines applicable rules for both the current law, and the new law.
What is Medi-Cal?
Medi-Cal is California’s version of the Medicaid program that is funded jointly by the state and federal governments. It is designed to provide free or low-cost medical assistance for low income or low-resource individuals. There are many different Medi-Cal programs, and eligibility may depend on factors such as age, disability, income or assets. Covered California is California’s version of the Affordable Care Act’s health insurance exchange. It is not a Medi-Cal program. Any tax credits or subsidies received through Covered California are not subject to Medi-Cal recovery.
New Law! Medi-Cal Cannot Touch Your Home
California Senator Ed Hernandez says that Medi-Cal recovery forces homeowners who are over age 55 and who need Medi-Cal to choose between their own health care or passing their modest homes to their children.
Many have echoed the same sentiment that millions of low-income Californians age 55 and older are reluctant to enroll in Medi-Cal because they are afraid that the state will take their house when they die. It is true that California’s Medi-Cal program has long looked to the house that mom and dad have left to their children to recoup public money spent on the parents’ healthcare in the last years of their parents’ life.read more
The Top 10 Benefits of a Comprehensive Power of Attorney
The benefits of a highly detailed, comprehensive power of attorney are numerous. Unfortunately, many powers of attorney are more general in nature and can actually cause more problems than they solve, especially for our senior population. This article is intended to highlight the benefits of a comprehensive, detailed power of attorney. A proper starting point is to emphasize that the proper use of a power of attorney as an estate planning document depends on the reliability and honesty of the appointed agent.
The agent under a power of attorney has traditionally been called an "attorney-in-fact" or sometimes just "attorney." However, confusion over these terms has encouraged the terminology to change so more recent state statutes tend to use the label "agent" for the person receiving power by the document.read more
10 Benefits of a Medi-Cal Asset Protection Trust
Never before has there been such a rapid growth in people turning 65 years of age or older and these seniors are expected to live longer than any previous generations. Living longer also means higher medical costs. Many parents spent most of their lives working to pay off their home mortgages and they would like to pass these homes on to their children. The federal government gives California approximately $17 billion per year as part of the Medi-Cal health insurance program. Medi-Cal is funded by the federal government but administered by California. Californians can use Medi-Cal to fund for their health care and still leave their house to their children if they plan ahead.read more
What's the difference between Revocable & Irrevocable Trusts?
California laws allow you to create trusts that will spare your heirs from the horrific, expensive and time consuming probate process. There are two categories of trusts: revocable trusts and irrevocable trusts. It is crucial to understand the advantages and disadvantages of each because neither one is a "one size fits all" solution.
Everybody’s life is unique and people have different objectives, needs and family dynamics. These factors will shape which type of you trust you should have . Both types of trusts allow you to transfer assets (your house) to a trustee who will administer and ultimately distribute the assets (your house) to the beneficiaries (usually your son and/or daughter) as provided in your trust. But the main difference between the two types of trusts is that the revocable trust can be changed at any time by the maker of the trust prior to the maker’s death; whereas an irrevocable trust cannot be changed without the consent of all the trust’s beneficiaries. The trust beneficiaries are the ones who are getting the assets in the trust.read more