Strategies for mitigating the impact of California’s Medi-Cal estate recovery program encompass legal and financial planning techniques designed to protect assets from being claimed by the state after the recipient’s death. This recovery program seeks reimbursement from the estates of deceased Medi-Cal beneficiaries for certain healthcare costs paid during their lifetime. For example, transferring ownership of a home to a qualified heir or utilizing specific types of trusts can potentially shield assets from recovery.
Preserving family wealth and ensuring its transfer to future generations are key benefits of proactively addressing estate recovery. Historically, the estate recovery program was intended to offset the state’s financial burden in providing medical care; however, careful planning allows individuals to balance receiving needed medical assistance with the desire to leave an inheritance. Understanding the complexities of state and federal regulations pertaining to Medi-Cal eligibility and estate recovery is vital for effective asset protection.
