Medicaid is important to many elders, because it will pay for long-term care. This is a very big issue within the elder law community, because most seniors will need long-term care, and it is very expensive. Medicare does not pay for living assistance.
The Medicaid program is in place to provide health care insurance for people who have been unable to accumulate significant resources. Because of the fact that eligibility for this program is based on financial need, there is an asset limit of just $2000 for an individual.
The program is jointly administered by the federal government along with each respective state government. Because of this joint administration, each state has a certain amount of latitude regarding how the program can be tailored. We practice law in the state of California. In our state, the program is called Medi-Cal.
There is an asset limit of just $2000 for seniors who are looking for Medi-Cal coverage to pay for long-term care, but there are some things that you own that would not be countable. Your home is not a countable asset, and your wedding ring, your engagement ring, and your heirloom jewelry would not be counted by Medicaid evaluators.
You could retain ownership of one motor vehicle that is used as a primary source of transportation, and your personal belongings and household items would not be counted. A whole life insurance policy valued at up to $1500 is allowable under Medi-Cal guidelines, and you can have unlimited term life insurance.
If you are married and you are applying for Medi-Cal while your spouse is still healthy enough to live independently, the healthy spouse can retain ownership of half of the countable community assets up to a particular limit. During the current calendar year, in the state of California this limit is $119,220.
Elder law attorneys help clients who are interested in Medi-Cal coverage. To this end you could give gifts to your loved ones while you are living to get assets out of your own name.
There is a 30 month look back in California, so you should ideally complete your gift giving at least 30 months before you apply if this is at all possible. However, there are legal strategies that can speed the process up to accomplish getting in a relatively short period of time.
Free Report on Medi-Cal Planning
Our firm has prepared a free special report on Medi-Cal planning. This report will provide you with a solid foundation of information to draw from going forward, and you can get your copy through this website.
To access your copy of the special report, visit this page and follow the simple instructions: Medi-Cal Planning Report.
To Schedule a Free Consultation
If you are interested in the possibility of working with our firm after learning these facts, please select our “Workshops” tab to RSVP for a free estate planning workshop. At that workshop you will be offered a free one-hour consultation with an attorney: www.collinslawgroup.com/seminars/
- The Asset They Forgot - August 12, 2026
- Your Trust Can Be Perfect and Your Family Can Still Panic - June 10, 2026
- Father’s Day Wisdom: If You Can’t Speak, The System Speaks For You - June 8, 2026
