Legal Question in Wills and Trusts in California
Living Trusts, can the property be touched
If a parent puts property (including the recident home)in to a Living Trust and they have to go on State medical coverage, can the state take the property from them? If the property is not in a Living Trust, and the person is under State Medical coverage, can the state force sale of property. My mother-in-law is worried that the daughter-in-laws will force her out of her home if the property is in any name but hers alone. I am worried that if she gets sick and state medical feels that they pay to much, they will force her out.
2 Answers from Attorneys
Re: Living Trusts, can the property be touched
It depends. Under a standard lving trust yes, they will take the house. If it is an irrevocable trust then it is harder for them to get the house.
Re: Living Trusts protect from Medi-Cal?
If a person receives Medi-Cal assistance for living in a facility, the state is reimbursed whether the property is in a living trust or in mother-in-law's name. This reimbursement occurs only after mother-in-law dies, but it does occur.
There may be ways for her to protect the property, including giving it away long before she applies for Medi-Cal, BUT NOTE: this is a complicated and always-changing area of the law, so don't do anything without the advice of an Elder Law attorney. I've heard wrong advice from non-Elder Law attorneys, and lots of wrong advice from well-intentioned relatives/friends.
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