Secure Your Medi-Cal Future: Asset Protection Trusts and Stacked Gifting Strategies for 2026 - San Francisco Bay Times

"Medi-Cal is California's program that helps people with low incomes pay for healthcare, like doctor visits or nursing home care. Starting January 1, 2026, Medi-Cal will check your assets-things like savings or a second home-to see if you qualify. If you have more than $130,000 (or $195,000 for couples), you might not get benefits unless you plan smartly. Trusts and stacked gifting are two ways to keep your assets safe while still getting Medi-Cal help."

"A trust is like a safe box where you put your money or property. You choose a trustee-someone you trust, like a family member or a professional-to manage it for you or your loved ones. An asset protection trust is especially useful because, once you put assets in it, they're no longer considered yours by Medi-Cal. This can help you stay under the asset limit and qualify for long-term care benefits."

"In California, this works because the state has unique rules that allow you extra flexibility when planning for long-term care costs. If each gift is less than a certain amount (called the Average Private Pay Rate, or APPR, which is about $13,656 in 2025; higher in 2026), you avoid a penalty. A knowledgeable attorney can help you use this strategy to help you get under the Medi-Cal asset limit without losing eligibility."

Medi-Cal will begin counting applicants' assets beginning January 1, 2026, which may disqualify individuals or couples with more than $130,000 or $195,000 respectively. Trusts, especially asset protection trusts, remove assets from personal ownership and can help applicants meet Medi-Cal's asset limits for long-term care. Stacked gifting involves giving multiple small gifts under the Average Private Pay Rate (about $13,656 in 2025) to reduce countable assets while avoiding penalties. California's rules provide planning flexibility, but the Medi-Cal look-back period and strict transfer rules can trigger penalty periods for improper transfers. An estate planning attorney can structure trusts and gifting strategies to preserve eligibility and avoid penalties.

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