By Jay Greene –
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.
How Trusts Can 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. For example, you could put savings or a vacation home in the trust, and Medi-Cal wouldn’t count them.
What Is Stacked Gifting?
Stacked gifting means giving small amounts of money to several people in the same month to lower your assets. 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.
Why You Need an Attorney
Setting up a trust or gifting money sounds simple, but Medi-Cal has strict rules. Starting in 2026, they’ll look back at your (called the look-back period) to check for gifts that might affect your eligibility. Improperly transferred assets can result in a penalty period that can result in severe consequences for your long-term care needs.
An estate planning attorney can guide you to set up asset protection trusts correctly and plan gifts so you don’t get penalized. They’ll also help pick a reliable trustee to manage your trust so you always have the resources you need as you age.
Take Action Now
If you’re worried about Medi-Cal eligibility in 2026, start planning now. Look at your investments, savings, and property to see if you’re over the asset limits. Talk to an estate planning attorney to explore asset protection trusts and gifting strategies. They can help you protect your money and still get the long-term care you need.
Statements in Compliance with California Rules of Professional Conduct.This article is for educational purposes only and does not constitute legal advice. Consult an estate planning attorney for personalized guidance.
Jay Greene, Esq., CPA, is the founder of Greene Law Firm, P.C., in San Francisco, dedicated to helping LGBTQ+ individuals and families secure their future. For more information, visit: https://www.greenelawfirm.com/
Trust Essentials
Published on September 25, 2025
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