Medi-Cal crisis planning is where a patient is currently in a nursing home or will be placed in the nursing home in the near future. Additionally, a home-bound patient who currently needs non-medical home care not covered by Medicare is also considered to be in crisis and in need of planning.

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Because of Medi-Cal's 30-month lookback on the transfers of assets, most people think it’s too late to protect assets from the spenddown – BUT IT’S NOT TOO LATE!!! Our firm handles crisis planning and can typically protect 100% of the assets of the estate from the spenddown even after a person has entered the nursing home.

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Plans vary depending on the circumstances. For married couples, the asset-to-income rule will allow for excess assets to be converted into an income stream for the healthy spouse through a special type of Medi-Cal-compliant annuity. Because the healthy spouse’s income doesn’t have to be contributed towards the cost of care, this can protect the assets that would have otherwise had to be spent on the nursing home patient’s care.

 

For single patients, we will find the fastest way forward to Medi-Cal eligibility using a divestment plan such as GIFT STACKING, which will help avoid or minimize transfer penalties on assets that are being protected.

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If your loved one has suffered from a stroke or Alzheimer’s-related dementia that causes them to need skilled nursing care, our firm can help you protect assets from the spenddown even if you’ve already started spending down your assets. To get help with protecting assets during a medical crisis that leads to a long-term care stay, click here.