The receiver of a gift does not have to claim the gift on their income tax, thus gifts don’t count for Covered CA subsidies, MAGI Income Line 37* of your 1040 or MAGI-Medi-Cal Qualification.

What assets can you have and still qualify for Medi-Cal?

To qualify, you must: Meet the medical requirements of Social Security’s definition of disability. Be working and earning income (this can be part-time work). Have assets worth less than $2,000 for an individual or $3,000 for a couple.

Do you have to report gifts to Medi-Cal?

Each gift triggers a transfer penalty period during which your father cannot receive Medi-Cal. Once California implements the new rules, you’ll have to disclose gifts made in the five years prior to filing the Medi-Cal application, and Medi-Cal transfer penalties will no longer be applied retroactively.

Does Medi-Cal look at your bank account?

While Medicaid agencies do not have independent access to a Medicaid recipient’s financial statements, Medicaid does an annual update to make sure a Medicaid recipient still meets the financial eligibility requirements. Furthermore, a Medicaid agency can ask for bank statements at any time, not just on an annual basis.

What are assets count for Medi-Cal eligibility?

It is for this reason that including Medi-Cal planning in your overall estate plan is commonly recommended to ensure that your assets are protected when you apply for Medi-Cal. Creating a successful Medi-Cal plan requires an understanding of which assets count for Medi-Cal eligibility and which assets are exempt.

When do you need to qualify for Medi-Cal?

At some point during your retirement years, there is a chance that you may need to qualify for Medi-Cal to help cover the high cost of long-term care.

What is the property reserve limit for Medi-Cal?

Countable property (property which is not exempt or unavailable) is included in the “property reserve.” Your countable property must not exceed the property reserve limit. Any amount over the property reserve limit will make you and/or your family ineligible for Medi-Cal.

When is a home exempt from Medi Cal?

Property used as a home is exempt (not counted in determining eligibility for Medi-Cal). When an applicant or beneficiary is absent from the house for any reason, including Institutionalization, the home will remain exempt if the applicant or beneficiary intends to return home someday.