By Jay Greene—
As of January 1, 2026, California has reinstated the asset test for most long-term care Medi-Cal programs, which help cover nursing home and intensive in-home care. For Bay Area residents—including seniors, couples, and chosen families—this means home equity and savings may affect eligibility sooner than before, prompting concern and proactive planning.
Updated Asset Limits
Applicants are generally limited to:
– $130,000 in countable assets (individual);
– $195,000 for a married couple, plus $65,000 per additional household member.
Exemptions often include your primary residence (under Medi-Cal guidelines), one vehicle, certain retirement accounts, personal belongings, and select burial plans. In the high-cost Bay Area, where many homes exceed $1 million, these thresholds can challenge even middle-class households.
Why This Resonates Strongly in the Bay Area
Bay Area seniors—especially in LGBTQ+ communities—often rely on partners, chosen family, or close friends rather than adult children, due to unique life experiences like lifetime wage gaps or past discrimination. This can heighten dependence on Medi-Cal for care while increasing vulnerability if assets push them over limits.
Many feel anxious about losing housing stability, autonomy, or preferred care options. Professionals (financial planners, CPAs, social workers, and healthcare providers) recognize the urgency, frequently urging clients with Bay Area property to act now to avoid surprises during renewals or applications.
Steering Clear of Transfer Pitfalls
Casual transfers (e.g., gifting a home) can now trigger penalties under the reinstated look-back period (phasing up to 30 months for transfers after January 1, 2026). Gifts below fair market value delay eligibility, calculated against the state’s average private-pay nursing home rate.
Strategic, smaller timed gifts (“stacking”) may shorten penalties under California’s concurrent rules—but only with expert guidance. DIY approaches often lead to longer delays or ineligibility. Proper planning protects generosity while aligning with current rules.
Effective Protection Strategies
Advance action still works:
Irrevocable Medi-Cal/asset protection trusts – When correctly set up, these remove assets from countable totals, minimize estate recovery after death, and help ensure a spouse, partner, or loved one retains the home and savings.
Valid spenddowns – Turn excess assets into exempt ones by paying debts, adding home accessibility features, replacing vehicles, prepaying funerals, or addressing medical needs.
Private nursing home costs often surpass $15,000/month. Proactive steps preserve more for loved ones and communities.
Practical Steps Forward
If 55+ with a home or savings, schedule a Medi-Cal-focused review soon.
Talk with your partner, close friends, or chosen family about decision-making and protection priorities.
Professionals can guide clients owning Bay Area property or who are worried about care costs to explore 2026 impacts—adding real value and peace of mind.
These planning steps and others may uphold dignity, stability, and choice for all family structures.
Get Started Today
A focused consultation clarifies your options under the 2026 rules. Contact Greene Law Firm, P.C. today for a free initial assessment: Call 415-905-0215
or email info@greenelawfirm.com
Statements in Compliance With California Rules of Professional Conduct
This article is for educational purposes only and does not constitute legal advice. Please consult a qualified estate planning attorney for personalized guidance.
Attorney Jay Patrick Greene, Esq., CPA, founded Greene Law Firm, P.C., which is licensed in California, Alabama, and Florida. He has over 15 years of experience in wills, trusts, probate, elder law, and asset protection. For more information, visit https://www.assetprotectionbayarea.com/
Trust Essentials
Published on January 29, 2026
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