Legal Question in Wills and Trusts in California
I'm a California resident and under 65 but disabled. I am on SSDI (and the MediCare that comes with it) and I am ALSO on the medical portion ONLY of SSSI, which in this state, is Medi-Cal. It's imperative that I don't lose my Medi-Cal which pays the 20% MediCare does not pay for. However, I am about to receive from my mother a fund of several thousand dollars (not enough to buy property) which means I will lose my Medi-Cal. I am physically disabled, not mentally, and the idea of a trust where I will have to ask a trustee - friend, relative, whatever - for money when I need it is distasteful to me, not to mention the legal fees. What are my other options for this inheritance so that I can still keep my Medi-Cal? Thank you,
2 Answers from Attorneys
Not sure, but I think if your income is low enough you can qualify for Medi-Cal coverage under Covered California without other means testing.
You can create a d4A Special Needs Trust. If you have a living parent or grandparent, Then than he or she can execute the trust for you. If you don't (if the money is an inheritance) then you would have to do so by court order with the help of an agent under a DPOA. The downside to this type of trust is that it must reimburse Medi-Cal after your death.
Alternatively, if your mother is alive and the money is a gift she is going to make you, she can create a third party SNT that doesn't have to reimburse Medi-Cal.
Either way, you can't be the trustee of your own SNT.
I will point out that you can't get Medi-Cal under the Affordable Care Act if you already have a primary insurer, which for you is Medicare.
In your case, if your mother is giving you only a few thousand dollars, it may be better for her to dole it out to you.
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