One of the most important issues when creating your Estate Plan is to ensure that your plan does not adversely effect your eligibility to receive certain bebefits such as Medicaid or Medi-Cal.

If you or your loved one may need long term healthcare or nursing home care, then you need to plan carefully so that your assets are not counted against you when determining your eligibility. A typical living trust will not protect you. More advanced planning is necessary and it is wise to work with an attorney who understands the issues particular to seniors.

Below is a partial list of assest which were exempt under the laws in effect as of 1993. If you have any of these types of assets, they will not be counted against you when determining whether not not you qualify for assitance from Medicaid or Medi-Cal for long term nursing home care.

• Principal Residence. (Calif. Welfare & Institutions Code 14006(b))
• Property Used in Trade or Business. (42 U. S. Code 1382b(a)(3)))
• Non-Business Income Producing Property. (22 CCR 50416)
• Property Needed for Work or Self-Support. (42 USC 1382(a)(3), 22 CCR 50485(a))
• Burial Plot, Vault, or Crypt for use by immediate family. (22 CCR 50477)
• Burial Expenses: Burial Trust up to $1,800 plus up to $1,500 set aside for such expenses. (22 CCR 50479; ACWD Letter No. 90-14 (2/25/90))
• One Motor Vehicle. (22 CCR 50461)
• Home furnishings and equipment. (22 CCR 50465)
• Personal effects (clothes, heirlooms, any wedding and engagement rings, and other jewelry). (22 CCR 50467)
• Musical Instruments. (22 CCR 50471)
• Life Insurance with cash surrender value under $1,500. (22 CCR 50475)
• Special Payments Exempt by Law. (Certain wartime-reparation payments and crime victim payments.)
• IRAs, Pensions and Annuities if beneficiary is receiving periodic payments. (22 CCR 50458)
• Joint Tenancy Accounts Actually Funded By Others. (22 CCR 50453(a)(3))

Estate planning regarding Medi-Cal and Medicaid issues is very complicated and you should only consult with an attorney who understands such issues and the ever changing laws and regulations.

As interest rates have dropped, many homeowners have refinanced their homes to reduce payments. If your home is held in a revocable living trust, then there are some additional steps that you must take in order to ensure that you do not undue the effort that you put into the creation of your trust.

Many lenders won't make loans on property held in a living trust. They insist that the home be transferred back to the owner's name before a loan or refinance is made.

After the new loan is made and the new deed of trust is recorded, you then must remember to transfer the home back into the living trust. Your lender will not remind you to do this and will probably not help you if you ask them.

If you forget to transfer your home back into the living trust, the time and money that you put into the creation of your trust will be undone and your home may be subject to probate.

Transferring the home back into the living trust is easy. All that needs to be done is to prepare and record a new deed showing that the home is being transferred back to the trust.