Long-term Care Planning for Same-Sex Couples

Jun 27, 2011  /  By: Amanda Maggi, Esq.  /  Category: eligibility requirements, exempt assets, Long-Term Care, Medi-Cal, Medicaid

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.

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