Medi-Cal Nursing Home Planning Attorneys
Planning for Nursing Home Care with Medi-Cal
Current Medi-Cal Asset Eligibility Limits
Asset Limits (Effective January 1, 2026):
- Single person: $130,000
- Married couple: $195,000
- Existing recipients: Reviewed at annual renewal
We recommend that you review assets before you apply or submit your Medi-Cal renewal.
Our law firm has prepared this page as a helpful quick reference for Californians interested in learning more about Medi-Cal nursing home planning & elder law planning.
Read more below to learn about example scenarios and benefits of elder law planning in California.
Schedule a consultation today and we’ll answer any other questions you have about Medi-Cal planning.
Please Note: The information on this page is intended for educational purposes only and is not legal advice. Medi-Cal rules are complex and highly situation-specific. Do not take action without consulting a qualified attorney. We would be honored to assist you.
What are the asset limits of Medi-Cal?
Until December 31, 2025, there was amazingly no asset limit for qualifying for long term care under Medi-Cal. Beginning January 1, 2026, California has returned to the asset-based eligibility rules used prior to 2024. To qualify, an applicant’s ‘non-exempt’ assets must be under $130,000 for a single individual or $195,000 if both spouses need assistance.
Common Exempt Assets (Not Counted):
- Primary Residence: Your home is generally exempt regardless of value (though future equity caps may apply).
- One Vehicle: Unlimited value if used for the applicant’s benefit.
- Retirement Accounts: IRAs and 401(k)s are exempt with proper reinvestment and distribution planning.
- Personal Property: Household goods, jewelry (but a limit for a single person), and burial plots.
- Assets of a spouse: Exempt if they do not exceed an amount called the Community Spouse Resource Allowance (the “CSRA”). For 2026, the CSRA is $162,660. (Note: the exempt assets of a spouse are not counted, such as their jewelry.)
What This Means in Practice:
A married couple could potentially protect:
– Their home (any value)
– $162,660 for the well spouse (the CSRA)
– $130,000 for the ill spouse
– All properly structured retirement accounts
– Other exempt assets listed above
Proper planning often allows many families to protect substantial assets — often several hundred thousand dollars or more — depending on the circumstances.
Real-World Case Study: Protecting a Seven-Figure Estate
A married couple sought our help when the husband required skilled nursing care. At the time, they owned:
- An above-average single-family residence (exempt)
- A $300,000 IRA in the wife’s name
- A $500,000 IRA in the husband’s name
- Approximately $350,000 in liquid savings
Despite these assets, we were able to qualify the husband for long-term care Medi-Cal.
The Strategy
Through careful Medi-Cal planning and a successful court 3100 petition, the wife retained:
- Her Social Security income
- The husband’s Social Security income
- Distributions from retirement accounts
As a result, the wife retained a monthly income well in excess of the standard Minimum Monthly Maintenance Needs Allowance.
The Result
The husband received the skilled nursing care he required, while the wife preserved her home, her income, and her long-term financial security.
Specialized Medi-Cal planning in California can protect significant assets that would otherwise be lost to nursing home costs. Every case depends on individual facts, but this example illustrates how proper legal strategy can significantly change the outcome.
What is Long Term Care under Medi-Cal?
Medi-Cal is the California state version of what is called Medic-Aid in other states. It is funded primarily by the federal government and is administered by the State. It pays for the medical care of those who do not have much in income or assets. It has no minimum age limit (unlike Medicare). In particular, it will pay for long term care in a skilled nursing facility (but generally not for care in assisted living or a board and care home). Medicare will only pay for part of the cost of the first 100 days in a skilled nursing facility, and only then if they have come from an acute care hospital.
Protection from Medi-Cal Estate Recovery
Shield Your Legacy, Secure Your Care: A Living Trust Keeps Your Home in the Family—Not with the State
We commonly get asked the question: “Can Medi-Cal Take My Assets After I Am Gone?”
It is a common misconception that if an individual receives aid from Medi-Cal, they will “take your home” or “put a lien on your home.”
Medi-Cal does not “take your home” or “put a lien on your home” while you are alive, recovery only occurs after a single person has passed away. By law, Medi-Cal cannot:
- Recover any amount if there is a surviving spouse.
- Recover against a child who is blind, disabled, or a minor.
- Recover against IRAs, other retirement plans, or life insurance.
Important 2017 Rule Change:
Since 2017, Medi-Cal estate recovery is much more limited. It now applies only to assets passing through probate.
When Medi-Cal estate recovery does not apply:
• Does not apply to properly structured Living Trust assets
• Does not apply to IRAs
• Does not apply to joint tenancy assets
This means well-planned estates, especially those using revocable living trusts, beneficiary designations on retirement accounts, and proper joint ownership — are largely protected from recovery claims.
Who Elder Law & Medi-Cal Nursing Home is For
- Significant Retirement Accounts
- Complex Estate Planning
- Married Couple Planning Ahead
- Family Caregiver Supporter
- Blended Family Protector
- Retirement Ready Professionals
- Probate Code §3100 Petitions
Situations Where Medi-Cal Planning Can Help
When a Loved One Needs Long-Term Care, The Guidance of a Qualified Estate Planning Attorney Can Help Protect What You’ve Built
At Staker|Rodriguez Law LLP, we specialize in helping California families navigate the complexities of long-term care, specifically:
- Individuals diagnosed with degenerative diseases like Alzheimer’s or Parkinson’s.
- Families with substantial assets who want to preserve their assets for their loved ones while ensuring quality long-term care is available when needed.
Diagnosed with Alzheimer's or Parkinson's?
Early Medi-Cal nursing home planning can mean the difference between preserving your family’s assets and spending them down to near zero before qualifying for benefits. A diagnosis shouldn’t mean you lose everything you’ve built.
Significant assets don't disqualify you
They make planning more important. Many families are surprised to learn that having substantial assets doesn’t disqualify you from Medi-Cal — with the right planning strategy, you can protect what you’ve worked a lifetime to build while still accessing quality nursing home care.
Is Medi-Cal planning part of estate planning?
Elder law & estate planning is more common than you think. Medi-Cal nursing home planning is commonly overlooked, however it’s a well-established area of elder law that families with degenerative disease diagnoses use to protect their homes & savings from increasingly burdensome medical costs.
The earlier you plan, the more options you have.
Waiting until a major health issue or diagnosis is the most common — and costly — mistake families make. Preparation is important, like most things in life. The sooner you begin Medi-Cal nursing home planning, the more tools are available to shield your assets and secure the care your loved one needs.
Your situation is unique — your estate plan should be too.
Whether you’re just beginning to see signs of cognitive decline or already coordinating full-time care, we help you understand exactly where you and your family stand and what steps you can take right now to protect your future with California estate planning and medi-cal planning.
Whether you’re planning ahead or facing an immediate need, time is often your most valuable asset in Medi-Cal planning & estate planning.
For Advance Planning:
- Review your current assets and long-term care insurance.
- Consider whether strategic gifting makes sense for your situation.
- Ensure your estate plan is structured to avoid Medi-Cal recovery.
For Immediate Needs:
- Apply for Medi-Cal while exploring asset protection options.
- Consider spousal resource allowance increases if married.
- Act quickly — some planning options disappear once care begins.
For Current Recipients:
- Review your assets before your next annual renewal
- Ensure compliance with new 2026 limits
- Don’t risk losing benefits by missing deadlines
- The time is now to consider whether or not to take action to qualify for Medi-Cal to pay for long term care in a nursing home or In Home Supported Services.
- The window of time to give away certain assets and take other actions may be limited.
More FAQs About Medi-Cal Planning
May I Give Away Assets?
Asset Gifting: Powerful but Requires Careful Planning
When handled without proper guidance, gifting can affect eligibility when care is needed most. Legal guidance from an experienced Medi-Cal planning attorney is recommended.
How California’s Gifting Rules Work:
- Gifts within 30 months of applying for long-term care Medi-Cal can cause ineligibility
- In 2026, each $14,440 in disqualifying gifts triggers one month of ineligibility. This amount is known as the “Average Private Pay Rate” and reflects the average monthly cost of nursing home care as calculated by the State of California.
- Example: A $144,400 gift creates 10 months of ineligibility.
- Gifts of exempt assets (like transferring a home to children) generally don’t cause penalties.
- California’s relatively favorable gifting rules create unique planning opportunities.
- Transfers made between January 1, 2024, and December 31, 2025, do not result in any penalty period, regardless of when a Medi-Cal application is filed. This created a limited planning opportunity that has now closed.
Why We Don’t Provide Details Here: Gifting mistakes can be financially catastrophic. Federal rule changes could eliminate current opportunities with little warning.
For these reasons, gifting strategies should only be implemented with proper legal guidance to avoid costly mistakes when long-term care is needed most.
Do the reinstated asset limits of Medi-Cal apply to existing recipients?
Yes, the reinstated asset limits apply to both new applicants and current recipients of long-term care Medi-Cal.
However, existing recipients are not automatically cut off on January 1, 2026. Instead, compliance is reviewed during the annual Medi-Cal “redetermination”, when the county reevaluates the current assets.
IMPORTANT: You have until the next annual redetermination to ensure compliance. Missing this deadline can lead to a suspension of benefits, requiring a complex and time-consuming re-application process. Proactive adjustment is much simpler than a retroactive appeal.
Action Steps for Current Recipients:
- Locate your last renewal notice to determine your next review date.
- Calculate your current countable assets.
- If over the limit, contact our office immediately to discuss options.
- Do not attempt asset transfers without legal guidance.
Not all assets count the same under Medi-Cal rules, and improper planning can result in loss of benefits when you need them most.
What About Future Medi-Cal Rule Changes?
Federal rule changes (including potential updates under the Deficit Reduction Act or future legislation) could eliminate current gifting and planning opportunities with little warning. Post-2026 rules remain uncertain and may impact asset limits, look-back periods, or recovery policies.We monitor developments closely to help families act before changes take effect.
Contact us for personalized guidance on protecting your options under evolving Medi-Cal regulations.
Married Couples: Keeping as Much of the Ill Spouse's Income as Possible
Financial Protections for the Well Spouse: What You Need to Know
As discussed above, bringing a couple’s countable assets down to the Community Spouse Resource Allowance (CSRA) limit is a cornerstone of Medi-Cal planning for married couples — and a key area where we can provide meaningful guidance.
A second critical issue involves income. When one spouse enters a nursing home, the question becomes how much of that spouse’s income must go toward their “share of cost” versus how much the well spouse at home can retain. This is governed by a protection called the Minimum Monthly Maintenance Needs Allowance (MMMNA), which in 2026 is set at $4,066.50 per month.
In many cases, this amount is not enough. We can petition the court under Probate Code Section 3100 for a spousal support order — commonly called a “3100 Petition” — to increase these allowances so that the spouse at home can keep all, or substantially all, of the combined income of both spouses. This is one of the most valuable services we offer.
Time-Sensitive Opportunity: Court petitions for increased allowances are significantly more likely to succeed when filed before or shortly after the Medi-Cal application is submitted. Waiting too long can narrow your options and reduce the amounts a court will approve. Acting early can make a substantial difference.
Finally, it is important to know that assets the well spouse acquires after the ill spouse has been approved for Medi-Cal — such as an inheritance — do not affect the ill spouse’s ongoing eligibility. This is an often-overlooked protection worth understanding as part of your overall plan.
Ready to Get Started With Medi-Cal Planning?
At Staker Rodriguez Law LLP, we do not just explain the rules; we help you navigate the legal guidelines to build a shield around your family’s legacy. Whether you are applying for Medi-Cal for the first time or facing a redetermination, we can help you prepare your assets to be sheltered from the costs of long term care or recovery by the state.
We’ve helped many California families preserve their assets while securing the care they need.
Call us at (805) 482-2282 or e-mail us.
