Question 1

Does Medi-Cal take your home after you die?

Accepted Answer

Sometimes. Yes. California's estate recovery program allows the state to seek reimbursement after your death for benefits it paid during your lifetime. Your home is usually the largest asset they target. What surprises most families isn't the rule. It's when they learn about it. Usually after it's too late to plan.

Question 2

Can Medi-Cal take your house while you're alive?

Accepted Answer

Generally, no. Your primary home is exempt while you're alive, even if you're on Medi-Cal. But if you're unmarried, no dependent lives with you, and you're in a nursing home long-term, the equity in your home can become countable toward the asset limit. That's when things get complicated. A living trust can help, but not in the way most people think.

Question 3

Will Medi-Cal take my savings?

Accepted Answer

Maybe. As of January 2026, California reinstated asset limits for nursing home Medi-Cal: $130,000 for an individual, $195,000 for a couple. If your countable assets exceed these limits, you won't qualify for nursing home coverage until you spend down. But not everything counts. Your house (usually), one car, and personal belongings are exempt.

Question 4

What counts toward the $130,000 asset limit?

Accepted Answer

Bank accounts (checking, savings, CDs), stocks, bonds, mutual funds, a second car, a second home or rental property, and cash. If your countable assets exceed the limit, you won't qualify for nursing home coverage until you spend down or restructure.

Question 5

What doesn't count as a countable asset for Medi-Cal?

Accepted Answer

Your primary home (equity doesn't count while you're alive), one vehicle, household furniture and personal belongings, retirement accounts (401k, IRA) — though RMDs count as income — and prepaid burial plans. Exempt assets are safe. But timing matters. Transferring assets improperly before applying for Medi-Cal can trigger penalty periods.

Question 6

Can a living trust protect your home from Medi-Cal?

Accepted Answer

The short answer is: maybe, but not in the way most people think. A living trust does not automatically shield your home from Medi-Cal while you're alive. But it can help protect it from estate recovery after death by avoiding probate. That's where the real risk lies for most California homeowners. A trust that is properly funded avoids probate. No probate means no state claim on your home through estate recovery.

Question 7

The 2026 Medi-Cal asset limit is back — what changed?

Accepted Answer

From 2024 to 2025, California suspended the asset limit for most Medi-Cal programs. That changed on January 1, 2026. The asset limit is now $130,000 for an individual and $195,000 for a couple. If you own more than that in countable assets, you may not qualify for nursing home Medi-Cal. This catches people off guard. They thought the asset limit was gone forever. It was just on vacation.

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