As I mentioned in a previous blog, many people in California end up relying on Medi-Cal to cover the costs of long-term care when they are older.  While Medi-Cal is a program just for Californians, it is a joint program funded by both state funds and federal Medicaid funds.  It is essentially the Medicaid program for California.  Because it is a jointly funded program, federal Medicaid rules, as well as, state rules govern the program.  So, while California has extended equal treatment of same-sex couples in certain respects, that is not yet the case under the federal Medicaid rules. 

In order to get Medi-Cal benefits, you have to meet eligibility requirements.  For many people, this means transferring assets in order to qualify.  Transfers of certain assets are disqualifying, which means that the individual who is trying to get Medi-Cal coverage will have to wait a certain number of months before they can start receiving long-term care benefits.  Opposite-sex married couples can get around lengthy periods of disqualification by transferring assets to their spouse, but same-sex couples do not get the same treatment under the Medicaid rules. 

Transfers of exempt assets such as your furniture, car, or home (if you plan to return) are not disqualifying as they are not considered in determining eligibility.  For opposite-sex married couples, transfers of non-exempt assets to your spouse are still okay (with certain limitations).  Same-sex couples, unfortunately, are not yet afforded the same treatment. 

All hope is not lost, however, as the Medicaid rules provide that it is up to the state to decide whether or not to impose the penalty period in cases where it would result in “undue hardship.”  This is a complex area of the law, and planning needs differ based on individual circumstances.  I recommend you contact an attorney familiar with these rules if you or someone you know needs help in this regard. 

Please don’t hesitate to contact Falk, Cornell & Associates as we are happy to setup a complimentary appointment to discuss your situation.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

Last weekend many people thought the world might end—not really, but people were talking about “what if?”  We’re not going to be around forever, but thanks to ever-advancing medicine / science people are living longer.  Longer lifespans make planning for the future all that more important. 

My mother recently had a milestone birthday and she, like many people, is becoming increasingly aware of the need to plan for the future.  She was wondering if she should start paying for long-term care insurance.  Many factors influence whether or not one should purchase it, but if you are older and can afford it it’s certainly a good idea as more people require long-term care.

Healthcare costs are something everyone worries about, but have you thought about what happens after you retire?  I stumbled upon a great article that explains the costs of health care after you retire, which is often overlooked.  Here is the article: Health Care Costs in Retirement by David Pitt, The Associated Press

Many people in California end up relying on Medi-Cal to cover the costs of long-term care, but you have to meet eligibility requirements in order to get it.  This means you may have to transfer assets in order to qualify.  It’s a complicated area, so I recommend you contact an attorney familiar with Medi-Cal rules if you or someone you know needs help navigating this area of the law.  If you have any questions or concerns, please don’t hesitate to contact Falk, Cornell & Associates as we are happy to assist you.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.