In a new law to go into effect January 1, 2017, a Living Trust may be utilized to protect assets from Medi-Cal claims for individuals dying after that date. This is a revolutionary law that elevates the advantages of a Living Trust in California to a new high. Previously, a Living Trust provided no protection from such claims – beginning next year it will.
The Living Trust will be drafted to include the new provisions which will be illustrated and made available through explicit and more defined regulations expected this fall.
Who will this effect:
- Anyone who currently has a Living Trust should consider an amendment to ensure the new law is implemented and included in the Living Trust;
- For those of you who have been procrastinating about a Living Trust, this new law offers another great advantage of obtaining one with these new provisions;
- This new law is especially beneficial to a single parent or spouses who have no insurance or protection from long term or catastrophic illness. The Living Trust will protect assets held in the Trust from claims should one receive Medi-Cal at some point in time;
- For those who are unsure whether they will need long term care in the future, the Living Trust can act as a protective document similar to how an insurance policy protects against claims.
We encourage all of you to implement the new law provisions if you have a concern in this regard. Don’t allow Procrastination to be a cancer in your Estate Plan.