Families in Milpitas often face a difficult realization when a loved one requires professional nursing care. The cost of long-term care in the Bay Area can quickly drain a lifetime of savings, leaving little for a spouse or the next generation. You may wonder if you have to lose everything before the state steps in to help. Fortunately, Medi-Cal planning allows you to protect your assets legally while ensuring you receive the care you need.
California has recently implemented significant changes to its eligibility calculation. As of January 1, 2026, the state has reinstated asset limits for non-MAGI Medi-Cal programs, including long-term care. Navigating these shifting regulations requires a clear strategy to avoid common pitfalls that could lead to benefit denials or future claims against your estate.
Understanding California’s Reinstated Asset Limits (2026)
For a brief period between 2024 and 2025, California eliminated asset limits for many Medi-Cal programs. However, effective January 1, 2026, the state reinstituted these limits to address budget needs. For individuals seeking long-term care, the countable asset limit is now $130,000. For a married couple where both seek benefits, the limit is $195,000.
This shift means that bank accounts, investments, and second homes are once again scrutinized when determining if you qualify for benefits. If your countable assets exceed these thresholds, you may be required to spend down your resources before Medi-Cal coverage begins. Even so, the state’s ability to recover those costs from your estate after you pass away remains a primary concern for many families near Calaveras Boulevard.
The Difference Between Eligibility and Estate Recovery
It is vital to distinguish between qualifying for Medi-Cal today and protecting your home for tomorrow. Even if you qualify for benefits under the current asset limits, the California Medi-Cal Estate Recovery Program may seek reimbursement from your estate after your death. Seeking reimbursement typically applies to services received when the beneficiary was 55 or older.
The state generally limits recovery to assets that pass through probate. If you own a home in Milpitas and it passes to your heirs via a simple will or through the probate court, the state may place a claim on that property to pay back the cost of your care. Using specific legal tools, such as living trusts or certain types of deeds, we can often help clients ensure their home transfers to their children without being subject to these claims. You can find more details on these protections at the California Department of Health Care Services (DHCS) website.
Protecting the Primary Residence
For most families, the home is their most valuable asset. Under California law, a primary residence is generally considered an exempt asset for eligibility purposes if the applicant or their spouse lives there or intends to return. But as mentioned, exempt does not mean it is safe from recovery.
Our Medi-Cal benefits and planning attorneys often work with families to remove the home from the probate estate by transferring it into a revocable living trust. Because California law focuses recovery efforts on assets subject to probate, a properly funded trust can serve as a shield. Documentation of these rules is available via the DHCS Estate Recovery page.
The Importance of the 30-Month Look-Back Period
With the return of asset limits in 2026, the look-back period has regained its importance. For those entering a skilled nursing facility, Medi-Cal reviews financial transfers made within the 30 months before the application date. If you gave away a large sum of money or transferred a property title for less than fair market value during this window, you could face a period of ineligibility.
Notably, California guidance (All-County Welfare Directors Letter 25-18) clarifies that transfers made between January 1, 2024, and December 31, 2025, are generally not disqualifying because the asset limit was not in effect during those years. Even so, any transfers made on or after January 1, 2026, are subject to the 30-month look-back and potential penalties, which is why proactive planning is much more effective than reacting once a crisis occurs.
Income Considerations for Spouses (MMMNA)
When one spouse enters a nursing facility, and the other remains at home, the “community spouse” is protected by specific income and resource rules. The goal is to prevent the spouse at home from falling into poverty. California law allows the community spouse to retain a certain amount of income, known as the Minimum Monthly Maintenance Needs Allowance (MMMNA).
In 2026, the maximum MMMNA is adjusted to over $4,000 per month (DHCS publishes specific annual adjustments). If the community spouse’s independent income is below the state-set threshold, they may be able to keep a portion of the institutionalized spouse’s income, ensuring that the spouse living in Milpitas can continue to pay for housing and utilities while their partner receives care.
Why Professional Guidance Matters
Medi-Cal regulations are notorious for their density and frequent updates. A mistake on an application or an improperly timed gift can result in thousands of dollars in out-of-pocket nursing home costs. At Keyes Law Group, we view estate planning as a way to provide peace of mind during some of life’s most stressful moments.
Elijah Keyes discovered his passion for this field after seeing how long-term illness impacts a family’s stability. Our team approach combines deep technical knowledge with a genuine desire to serve our neighbors. We want to ensure every family in our community has a plan that protects their legacy and supports their well-being.
Taking the Next Step
Planning for long-term care is not just about paperwork; it is about protecting the life you have built. Whether you are looking ahead to the future or facing an immediate need for care, we are here to provide clear, actionable advice. Our office is familiar with the local nuances of the Santa Clara County legal system and the specific needs of Bay Area residents.
If you are ready to discuss your options and secure your family’s financial future, reach out to us. Our legal team can help you understand how current California laws apply to your specific situation and develop a strategy that aligns with your goals.
To schedule a consultation with our team, please call our law office at 408-443-2397.
