When applying for Medi-Cal, it is sometimes helpful to have any “excess assets” placed into a Family Needs Trust, which is an irrevocable trust. By doing this, and it does have to be done in a legal and specific manner for this to work, the family need not lose the monies they have saved during their lives to take care of them as they age. This is a type of Special Needs Trust and allows the Medi-Cal recipient to be the beneficiary of the assets, while not allowing the assets to be taken by the state for recovery, nor have the assets counted as available assets for the application process.
The use of this type of trust must be done under the rules of the state and the Rules of the Department of Healthcare Services or it will not be beneficial to the Medi-Cal recipient.
The process of estate planning may seem daunting… but, it doesn’t have to be. Estate planning and the creation of a Family Needs Trust is a proactive way to ensure that you, your family, and your estate are taken care of the way you wa