Legal Question in Elder Law in California

divestiture of assets

I had heard that a well-off married couple can be qualified for indigency when they enter a nursing home by having an attornet arrange to have assets divested. All the doctor has to do is indicate that the spouse going into the nursing home has a likelihood of returning home even if the spouse is fully dependent and the at-home spouse doesn't have the abiltiy to care for them. Is this true and how can someone get away with this ? What are the ways an attorney can seek to overturn the divestiture of assets once someone begins the process ?


Asked on 6/24/00, 2:21 pm

1 Answer from Attorneys
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: divestiture of assets

A couple (or single person) can protect many of their assets and still qualify for nursing home care under current Medi-Cal/Medicaid rules. One's home and car are usually exempt, as well as a certain amount of cash/other assets for the spouse. Still, if not taken care of, these exempt assets might have to be used to pay back the nursing home debt to the state.

This is an area that requires careful planning by an attorney familiar with the latest rules. Mistakes (and/or fraud) could mean ineligibility for the person needing the nursing home, so it's important to discuss this with an attorney familiar with the process.

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Answered on 9/03/00, 1:34 am


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