 |
 |
People
often confuse liens and estate claims. Both have been used
by the state in attempts to reimburse the Medi-Cal program
for payments made to beneficiaries. Estate claims are claims
made against the estate of the deceased Medi-Cal beneficiary.
Your home, for example, may be an exempt asset while you are
alive and is not counted for Medi-Cal eligibility purposes.
However, if the home is in your name when you die, the state
can make a claim against your estate for the amount of Medi-Cal
benefits paid.
|
Can
the state place a lien on your home? Not any more! For a brief period
of time, California law permitted liens against the homes of nursing
home, Medi-Cal beneficiaries who were not “reasonably expected”
to return home, and against the real property of the surviving spouse
of a deceased nursing home beneficiary.
An injunction and Senate bill (SB412, Senator Milton Marks), ended
the state’s ability to impose liens except in cases where the
home is not exempt and is being sold.
After the beneficiary’s death, the state
can make a claim against the estate of an individual who was 55
years of age or older at the time he or she received Medi-Cal, or
who received Medi-Cal in a nursing home, unless there is a surviving
spouse or a minor, blind or disabled child. Thus, if there are any
assets left in the estate of the deceased beneficiary, Medi-Cal
will seek to be reimbursed for benefits paid.
The best way to avoid an estate claim is not to have anything
in your estate when you die.
All Medi-Cal applicants who have a home they
would like to leave to their children or someone else should declare
an intent to return home on the Medi-Cal application and consider
transferring the interest in the home in some way. If the applicant
intends to return home, the home is an “exempt” asset
and exempt assets can be transferred without affecting Medi-Cal
eligibility. Any transfers should be considered before or as soon
as the resident enters the nursing home.
If you have a spouse in a nursing home and are concerned about an
estate claim, you might consider having the institutionalized spouse’s
interest in the home transferred to you – the at-home spouse.
Any such transfers mentioned above should be reviewed with a qualified
Medi-Cal knowledgeable estate planning attorney. Real property transfers
usually involve tax consequences, which may outweigh the benefits
of the transfer.
For more information about services provided by the experts at Linker Financial Group, Inc. or to schedule a brief, no charge, no obligation consultation to see if Medi-Cal Long Term Care planning is right for you, please give us a call or send us an e-mail right now.
|
|
