CAN I MAKE A LARGE GIFT TO IMMEDIATELY QUALIFY FOR MEDI-CAL BENEFITS?
Medi-Cal has strict regulations concerning asset transfers. Improper transfers may result in a significant “period of ineligibility” during which an individual cannot receive long term care Medi-Cal benefits. Moreover, at some point in the future California is expected to implement the Deficit Reduction Act of 2005 which will introduce additional Medi-Cal gifting penalties. Transfers can also have negative estate and capital gains tax ramifications. Legal advice from a knowledgeable Medi-Cal attorney should be obtained before making any transfers of assets. That said, carefully crafted Medi-Cal gifting strategies may still be an effective means for reducing “countable” assets in order to qualify for Medi-Cal Long Term Care benefits. Of course, all gifts must be documented and disclosed to Medi-Cal during the application process. An appropriate Medi-Cal gifting strategy limits, or completely avoids potential “periods of ineligibility” for Medi-Cal Long Term Care benefits. There are many
