By Laura Butkute, Esq. | Elder Law Attorney, Elder Care Law California
Many Families in Los Angeles Fear They Have “Too Many Assets” for Medi-Cal
When a loved one needs nursing home care in the Los Angeles area, costs can easily reach $150,000 a year or more. Families often worry they will have to spend down nearly all their savings to qualify for Medi-Cal. They fear losing the family home or the financial security they worked hard to build.
This fear is common — but it often overlooks important protections and planning strategies.
With proper Medi-Cal asset protection in Los Angeles, there are legitimate ways to protect assets. These include keeping the family home safe, converting certain savings into protected items, and using spousal protections for married couples. The key is acting with the right plan before time runs out.
The 2026 Medi-Cal changes — asset limits are now back in effect — make timing even more important. At Elder Care Law California, we help families across Los Angeles County, Long Beach, and Orange County protect what matters most while qualifying for the care they need.
Can Medi-Cal Take Your Family Home? (How to Protect Home from Medi-Cal)
Short answer: Usually not — if you plan correctly.
During the Medi-Cal application, the primary home is exempt. It does not count against the asset limit as long as you or your spouse intends to return home, or your spouse continues to live there.
After death, Medi-Cal can seek reimbursement from the estate for benefits paid after age 55. However, under California law (SB 833), recovery is limited to the probate estate.
The best way to protect your home from Medi-Cal is probate avoidance — placing the home in a properly funded revocable living trust so it passes directly to heirs outside of probate. This greatly reduces or eliminates the risk of a recovery claim against the house.
We address both the eligibility exemption and long-term protection from estate recovery in every complete plan.
Worried about losing your family home? A free consultation can show you exactly how to protect it.
2026 Medi-Cal Asset Limits at a Glance
| Situation | Countable Asset Limit | Notes |
|---|---|---|
| Single Applicant | $130,000 | Reinstated January 1, 2026 |
| Married Couple (combined) | $195,000 | Includes spousal protections |
| At-Home Spouse (CSRA) | Up to $162,660 | Adjusts annually each January |
| Monthly Income Protection (MMMNA) | Up to $4,066.50 per month | For the at-home spouse |
Many assets — like the family home, one vehicle, and personal belongings — are fully exempt and do not count toward these limits.
What Medi-Cal Asset Protection Really Means
Medi-Cal asset protection is the legal process of arranging your finances so you can qualify for long-term care coverage without spending down all your savings — and so your family keeps what’s left after you’re gone.
There are two distinct threats families need to plan for:
1. Spend-down at the time of application. Only “countable” assets are measured against the asset limit. Not everything you own counts — and legal restructuring can often protect assets that do count without triggering penalties.
2. Estate recovery after death. Even after Medi-Cal is approved, the state can seek reimbursement from your estate for benefits paid after age 55. Under California’s SB 833, recovery is limited to the probate estate. A properly funded revocable living trust moves the home and other assets outside of probate, which significantly reduces or eliminates the recovery risk.
A complete asset protection plan addresses both threats — not just one.
Exempt (Protected) Assets Usually Include:
- Your primary home
- One vehicle of any value
- Personal belongings and household items
- Prepaid burial plans
- Certain retirement accounts (when in payout status)
Understanding exactly what counts and what does not can save families tens of thousands of dollars.
Common Legal Strategies That Help Families
We use several proven approaches depending on your situation:
- Converting countable savings into exempt assets — for example, paying off a mortgage, making home repairs, buying a new car, or prepaying funeral costs
- Spousal transfers — moving assets to the at-home spouse within allowed limits, often without penalty
- Trust planning — protecting the family home and other assets from both spend-down and future estate recovery
- Income strategies — reducing the monthly Share of Cost
California reinstated a 30-month look-back period in 2026. This means the county reviews recent asset transfers. Proper timing and structure are essential to avoid delays in coverage.
Why Going It Alone Can Be Expensive
Families who try to handle this without guidance often make two costly mistakes:
- They spend money on assets that were already protected.
- They make transfers that trigger penalties and delay Medi-Cal approval for months.
A complete plan protects assets during life and after death, usually through careful trust planning.
This area of law is complex. Most families face it only once. We handle these cases every day.
How We Help with Medi-Cal Asset Protection in Los Angeles
We follow a clear, step-by-step process tailored to your family:
- Full Asset Review — We inventory everything you own, identify what is countable vs. exempt, and check any recent transfers.
- Custom Protection Plan — We design strategies that fit your specific situation and the 2026 rules, including ways to protect your home from Medi-Cal.
- Implementation — We help convert assets where needed, set up trusts for probate avoidance, and handle spousal protections.
- Medi-Cal Application — We prepare all paperwork, submit it, and communicate directly with LA County DPSS, Orange County SSA, or Long Beach’s office. You never deal with the county.
- Ongoing Support — We track the application through approval and help with related needs like estate planning or powers of attorney.
You never have to face the county alone. In-home appointments are available throughout Los Angeles, Long Beach, and Orange County.
Worried about losing your family home? Get peace of mind with a free consultation and flat fee quote.
📞 (866) 822-7211 | Free Consultation | Flat Fee Quoted Upfront
Real Families We Have Helped
Pasadena Family — Home and Retirement Accounts Protected
After their father entered a nursing facility, the family was told he had too many assets. A full review showed the home, vehicle, and certain retirement accounts were exempt. We used legal restructuring for the remaining savings and placed the home in a properly funded trust. He qualified for Medi-Cal within 60 days, and the home was protected from future estate recovery claims.
Long Beach Married Couple — Spousal Protections Applied
The wife was afraid they would lose their life savings when her husband needed memory care. Using spousal rules, she was able to keep the full Community Spouse Resource Allowance. We also diverted income monthly to support her living expenses. The family kept their home and far more savings than they expected.
These examples are based on typical cases. Every situation is unique. Past results do not guarantee future outcomes.
“Elder Care Law is highly professional and knowledgeable in the Medi-Cal arena and assisted our family with securing Medi-Cal for our aging parents.”
— Denise D.
Read more real stories from families we have helped in Los Angeles and Southern California.
2026 Medi-Cal Asset Protection Rules — Quick Summary
- Asset limits: $130,000 (single) | $195,000 (married couple) — reinstated January 1, 2026
- CSRA (at-home spouse): Up to $162,660 (adjusts each January)
- MMMNA (monthly income): Up to $4,066.50 (adjusts each January)
- Look-back period: 30 months for nursing home transfers on or after January 1, 2026
- Estate recovery: Applies after age 55; limited to the probate estate — trust planning helps protect assets
Note: Miller Trusts (QITs) are not used in California.
Last updated: January 2026 | Next review: January 2027
Frequently Asked Questions
How can I protect assets from Medi-Cal in California?
Start by identifying exempt assets — your home, one car, and personal items. Then use legal strategies such as converting savings into exempt items, spousal transfers, or trust planning. Timing matters because of the 30-month look-back period. An elder law attorney can build a plan that protects the most while meeting the rules.
Do you have to spend down all your assets to qualify for Medi-Cal?
No. Many assets are already exempt and do not count toward the limit. For assets that do count, legal restructuring can often protect them without triggering penalties. Spending down the wrong things is a common and expensive mistake.
Can you protect your home from Medi-Cal in California?
Yes. The home is usually exempt during the eligibility review if a spouse still lives there or you intend to return. After death, the state may claim against assets that pass through probate. Under SB 833, recovery is limited to the probate estate. The best protection is probate avoidance — placing the home in a properly funded revocable living trust so it passes directly to heirs outside of probate.
What is the Medi-Cal asset limit in California for 2026?
$130,000 for a single person and $195,000 for a married couple in countable assets. Many items — including the home, car, and personal belongings — do not count toward the limit. Married couples may also use the CSRA to protect additional assets for the at-home spouse, up to $162,660.
What is the 30-month look-back period for Medi-Cal?
California reinstated a 30-month look-back period for nursing home Medi-Cal applicants effective January 1, 2026. This means the county will review asset transfers made in the 30 months before application. Transfers that were made without receiving fair market value may result in a penalty period that delays coverage. Proper planning and timing are essential to avoid these delays.
Does Medi-Cal take your house after you die?
Medi-Cal may file a recovery claim against your estate after death for benefits paid after age 55. However, under California’s SB 833, recovery is limited to assets that pass through probate. If your home is held in a properly funded revocable living trust, it typically passes outside of probate and avoids estate recovery. This is one of the most important reasons to engage in trust-based planning before or during the Medi-Cal process.
What is the Community Spouse Resource Allowance (CSRA)?
The CSRA is the amount of countable assets a healthy at-home spouse (the “community spouse”) is allowed to keep when the other spouse applies for nursing home Medi-Cal. In 2026, the CSRA is up to $162,660. Assets above that limit may need to be addressed through legal planning. The CSRA adjusts annually each January.
Do I need an elder law attorney for Medi-Cal asset protection?
Most families benefit significantly from working with an elder law attorney. The rules are complex, the look-back period creates real risk for mistimed transfers, and the difference between countable and exempt assets is not always obvious. Families who go it alone often spend money on assets that were already protected — or trigger penalties that delay care. An experienced attorney will identify the safest legal strategies for your specific situation and manage the full application process, including all communication with the county.
About Elder Care Law California
Since 2003, we have helped Los Angeles, Long Beach, and Orange County families protect their homes and savings while qualifying for Medi-Cal. Asset protection sits at the heart of what we do. We manage the full process and related elder law services under one roof.
Every family’s situation is different. The protections available depend on your specific facts.
- In-home appointments available
- Flat fee estate planning retainers
- We handle all county communication — you never deal with DPSS directly
📞 (866) 822-7211 | Free Consultation