Medi-Cal Planning

Medi-Cal Exempt Assets

Under the Medi-Cal law, these assets are ONLY exempt at the time you enter the nursing home, and are NOT exempt for purposes of inheritance by your children. Under Medi-Cal law, liens or claims can be imposed on both real property and personal property when the Medi-Cal recipient dies.Exempt assets are:

• The home, houseboat, mobile home, multi-unit dwelling if he or she lives in one of the units at the time he or she enters the nursing home. The exemption is only for a limited period of time and property is not exempt in terms of inheritance.

• Other real property if and only if it is used as a business or a means of self-support. Again it is NOT exempt from liens/claims on death.

• Household goods and personal effects

• Wedding and engagement rings of any value. Other jewelry up to a $100 limit

• One automobile if used for the benefit of the applicant

• Whole life insurance with a face value of $1,500

• Term life insurance of any face value

• IRAs/Retirement Plans in the name of the well spouse

• Burial Plots

• Prepaid Burial Plan - any amount and $1,500 in the bank where that amount is designated for burial funds. This $1,500 must be kept separate from other monies.

• Cash surrender value of pension funds and annuities in the name of the ill spouse regardless of value if and only if payments of principal and interest are being made. If the annuity was recently purchased AND the payments were NOT amortized over the life expectancy of the annuitant, then the annuity will NOT be exempt

• $2000 in assets, called a "property reserve" for a single person
  

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