Understanding the Risk: Can Medi-Cal Really Take Your Home?
Yes—under current California law, Medi-Cal can place an estate recovery claim against your home and other assets after your death to reimburse the state for long-term care expenses. Many families are shocked to learn this only after a loved one passes.
With the January 1, 2026 Medi-Cal eligibility law change, asset limits may be reinstated, and protections that exist under current rules could disappear. That means now is the time to act.
What’s Changing in 2026—and Why It Matters
California is preparing to reinstate stricter asset testing rules for Medi-Cal long-term care eligibility in 2026. This shift could disqualify applicants who previously qualified under expanded eligibility rules passed during the Public Health Emergency (PHE).
According to California Advocates for Nursing Home Reform (CANHR), families could lose eligibility or be subject to recovery claims if they don’t plan in advance. Waiting until a crisis hits may leave you with fewer legal options to protect your legacy.
Key Risks Under the New Law:
- Reinstated asset limits may disqualify applicants.
- Recovery against homes and savings may expand.
- Planning tools may become less effective post-deadline.
Proven Strategies for Medi-Cal Asset Protection
You don’t have to choose between quality care and keeping your home. Proper legal planning can help you qualify for Medi-Cal benefits while protecting your assets from recovery.
Establish an Irrevocable Medi-Cal Asset Protection Trust (MAPT)
This specialized trust allows you to legally transfer your home or savings out of your name while preserving eligibility. Assets in a MAPT are generally exempt from estate recovery—if done correctly and early enough.
Use Spousal Protections
For married couples, California law allows certain protections to help the healthy spouse retain property and income. These must be implemented before eligibility is determined.
Secure Advance Directives and Powers of Attorney
Clear documents empower loved ones to act quickly in a crisis—ensuring timely Medi-Cal applications and proactive planning.
Visit our Estate Planning Services page or learn more about Medi-Cal Planning to understand how Sandoval Legacy Group can help.
Why You Must Act Before January 1, 2026
Waiting could cost your home. After the new law takes effect, it may be too late to protect what you’ve worked a lifetime to build. The good news? There’s still time—if you start now.
According to Justice in Aging, the policy shift may disproportionately impact low- and middle-income families who rely on Medi-Cal for long-term care but lack legal support. Don’t let your family be caught off guard.
Free downloadable Medi-Cal Planning Guide & watch our previously recorded webinar
How Sandoval Legacy Group Can Help You Protect What Matters
At Sandoval Legacy Group, we specialize in proactive planning. With over 75 years of combined experience in Medi-Cal asset protection, elder law, and estate planning, we help:
- Seniors and families navigate changing Medi-Cal laws
- Preserve homes, savings, and legacies
- Avoid probate and unnecessary recovery
We offer:
- Custom Medi-Cal Asset Preservation Plans
- Irrevocable trust creation and review
Schedule your confidential Life & Legacy Planning Session today. Contact Sandoval Legacy Group to get started.
Note: This blog post is for informational purposes only and does not constitute legal advice. For personalized guidance, please consult with a qualified attorney.
California Advocates for Nursing Home Reform (CANHR)
Justice in Aging
California Department of Health Care Services – Medi-Cal
https://www.dhcs.ca.gov/services/medi-cal/pages/default.aspx