BLACK FAMILY WEALTH MATTERS: Click here to learn how we are working to support you.
PROTEJA SU HOGAR Y SU FAMILIA - Se Habla Espanol. Haga clic aquí!
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Our Firm
    • About Our Firm
    • Areas We Serve
      • Los Angeles County
        • Inglewood
        • Malibu
        • Santa Monica
        • Torrance
        • Venice
    • Pre Consultation Form
    • Attorney and Staff Profiles
      • Attorney Caprice Collins
      • Attorney Lioness Ebbay
    • Awards & Recognition
    • Giving Back
    • Our Reviews
    • Speaker Connection
    • Staff Events
  • Services
    • Asset & Business Planning
    • Estate And Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning Services
    • LGBTQ Estate Planning
    • Medi-Cal and Elder Law
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
      • Trust Administration & Probate Definitions
  • EVENTS
  • Resources
    • Elder Law
      • Ladera Heights Elder Law
      • Los Angeles County Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
      • Medi-Cal Planning Checklist
    • Estate Planning
      • Estate Planning Checkup
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning For Niches
        • Trust Administration
      • Estate Planning Definitions
      • Estate and Gift Tax Figures
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Free Seminars
    • Frequently Asked Questions
      • Business Succession Planning
      • Elder Law
        • Medi-Cal
        • Nursing Home Planning
        • Understanding Dementia
      • Estate Planning
        • Charitable Gifting
        • Estate Planning for Women
        • Frequently Asked Questions for Families Without an Estate Plan
        • LGBTQ Estate Planning
      • Financial Planning
        • Tax Planning in Your Estate Plan
      • Incapacity Planning
        • Veteran’s Benefits
      • Legacy Wealth Planning
      • Pet Planning
      • Power of Attorney
      • Probate
        • Serving as Executor
        • Small Estate Administration
      • Trust Administration & Probate
      • Trusts
        • Living Trusts
      • Understanding Estate Taxes and How They Impact Your Estate Plan
    • Legacy Wealth Planning Pre-Consultation Form
    • Newsletters
    • Probate and Trust Administration
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
    • Published Books
    • The Ultimate Caregiver Guide
    • Caregiver’s Worksheets and Checklists
  • Videos
  • Reviews
    • Our Reviews
    • Review Us
  • Women’s Planning
    • A Guide to Estate Planning for Women
    • Frequently Asked Questions
  • Trust Administration
  • Blog
  • Contact Us

Collins Law Group

Los Angeles Estate Planning Attorney

powered by BirdEye

Connect with us today(310) 677-9787

Attend a FREE Event
  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram
  • Pinterest
x

How to Protect Your Family In Case of Your Illness or Death

During our webinar, we discuss family home protection, avoiding nursing home poverty, preventing family feuds, protecting your kids' inheritance, and how you can keep the government out of your affairs.

Watch our webinar now
Home » Probate » Asset Protection Comes in Different Forms

Asset Protection Comes in Different Forms

August 8, 2016Asset Protection

asset protectionWhen you hear the term “asset protection,” lawsuits will probably come to your mind. Without question, there are litigious types out there, and you can take steps to shield your assets from litigants seeking redress.

However, there is another form of asset protection that flies under the radar, and it is important for just about everyone. In this blog post, we will provide some eye-opening information about the need for this type of asset protection for senior citizens.

Nursing Home Costs

Long-term care costs are a very big deal when you understand the facts. We practice in the state of California, and the cost for a room in a nursing home in our state averages over $100,000 per year.

People often spend multiple years receiving nursing home care, so the expenses can be considerable. They could potentially consume everything that you intended to leave behind to your loved ones.

If you are thinking that Medicare will pay for your long-term care expenses, you should think again. Most people will qualify for Medicare coverage at the age of 65, but Medicare does not pay for nursing home or assisted living community expenses.

Help with your activities of daily living is considered to be custodial care rather than medical or convalescent care. Medicare will pay for convalescent care after surgery for up to 100 days, but it will not help with custodial care expenses.

The Medi-Cal Program

Most people here in California have heard of the Medi-Cal program. This is a government run health insurance program that provides coverage for people who have virtually no financial resources.

If you retire with some assets, and you qualify for Medicare, Medi-Cal would probably not seem relevant to you.

In spite of the above, Medi-Cal actually becomes quite relevant to a significant percentage of seniors, because this program will pay for long-term care.

Because Medi-Cal is a program that is only available to people who can demonstrate financial need, there are income and asset limits. For an individual, the limit on countable assets is just $2000.

“Countable” is an operable word here. Some of the assets that you own do not count when Medi-Cal is determining your eligibility status. You can maintain ownership of your home, and this is a big deal for homeowners.

Your wedding ring, your engagement ring, and your heirloom jewelry are not countable, and you can maintain ownership of one vehicle that is used as a primary source of transportation. The Medi-Cal program does not count your household goods and personal effects either.

An insurance policy with no cash value (term life insurance) would not count, but there is a $1500 limit on whole life insurance. You are also allowed to set aside $1500 to cover burial or cremation expenses.

Nursing Home Asset Protection

When you hear all of the above, you would logically come to a conclusion: If you ever need long-term care, you could give assets to your loved ones so that you could qualify for Medi-Cal coverage.

This is not as simple as it may appear to be on the surface, because there is a 30 month Medi-Cal look-back period. Medi-Cal evaluators would examine your financial transactions going back 30 months. If they found that you gave away assets within this 30 month time frame, your application would be denied.

A penalty would be imposed. The length of the penalty would be tied to the amount that you gave away as it compared to the cost of long-term care in California. For example, if you gave away enough to pay for two years of long-term care, your eligibility for Medi-Cal coverage would be delayed by two years.

Because of the 30 month look-back, you must plan ahead carefully in an intelligent and informed manner if you want to qualify for Medi-Cal at the ideal time without losing anything in the process.

When it comes to divesting yourself of assets to qualify for Medi-Cal, you could give direct gifts at least 30 months before you apply for coverage. It would also be possible to convey assets into an irrevocable Medi-Cal trust.

With this type of trust, you would surrender control of the principal, but you could still continue to receive income from the earnings of the trust before you apply for Medi-Cal coverage.

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:  https://collinslawgroup.comseminars/

  • Author
  • Recent Posts
Caprice Collins
Caprice Collins
Attorney Caprice L. Collins is a top rated Harvard Law School graduate. She has 34 years of legal experience with a successful law practice devoted exclusively to Estate/Business Planning and Trust Administration. Attorney Collins is a well-respected keynote speaker on Wills, Living Trusts, Estate Planning, Business Planning and Trust Administration. She has appeared on California’s Real Estate Radio Station KTLK AM 1150 as a legal expert on Estate Planning and Living Trusts among many other notable media appearances.
Caprice Collins
Latest posts by Caprice Collins (see all)
  • Why Do We Need Estate Plans If We Do Not Plan to Have Children? - March 20, 2023
  • Using an Incentive Trust to Encourage a Beneficiary to Make Good Use of an Inheritance - March 17, 2023
  • How to Incorporate Asset Protection Strategies into Your Estate Plan - March 13, 2023

Other Articles You May Find Useful

Los Angeles estate planning lawyers
Are Your Assets Protected in Your Estate Plan?
Los Angeles asset protection planning lawyers
6 Ways to Protect Your Assets
asset protection
Asset Protection Comes in Different Forms
Collins Law Group
Is Probate Always Required?
report
Free Report: How Much Can You Transfer Free of the California Estate Tax
Collins Law Group
What Is a Family Limited Partnership & How Does It Work?

Primary Sidebar

Collins Law Group

Blog Subscription

Sign up to our blog to receive the latest estate planning news and updates!

  • This field is for validation purposes and should be left unchanged.

Our Attorneys

Attorney Caprice Collins

Get to Know Attorney Caprice Collins


Attorney Lioness Ebbay

Get to Know Attorney Lioness Ebbay

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram
  • Pinterest

Testimonials

Client Review
August 19, 2020
    

“My mother told me about the Collins Law Group and I must say, the entire experience has been a real pleasure. Although I was nervous at first, the Collins Law Group staff put me at ease with their friendliness and knowledge. I didn’t realize how hard it could be on your family and loved ones left behind if you die without any planning or directions in place for them. My biggest concern was making sure my elderly mother would be provided for and taken care of if something happened to me. I have been a caregiver for her for 12 years, so this planning was crucially important. I had previously made a living trust for myself on Legal Zoom but there is no comparison to the level of service and professionalism that Collins Law Group embodies. Attorney Collins and her staff provides excellent service and it will take a large burden off of my family when they need guidance at the time of my passing.”

default image
-Ms. Jones

Where We Are

Collins Law Group
3330 West Manchester Boulevard
Inglewood, CA 90305
Phone: (310) 677-9787
Fax: (310) 677-6742
Email: clcfirm@aol.com

See Larger Map Get Directions

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 5:00 PM

Map

Collins Law Group Google Map

Footer

  • About Our Firm
  • Advantages of Working With Our Firm
  • Services
  • Sitemap
  • Resources
  • Blog
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram
  • Pinterest
Collins Law Group footer logo

Attorney Advertisement

© 2023 American Academy of Estate Planning Attorneys, Inc.