Can Medi-Cal Take My Parents' House?

Usually no. For deaths on or after January 1, 2017, California Medi-Cal estate recovery — the state’s right to be repaid from a deceased recipient’s estate — reaches only assets that pass through probate, the court process for transferring a decedent’s property (Welf. & Inst. Code §14009.5, as amended by SB 833). So a home held in a properly funded revocable living trust, transferred by a transfer-on-death deed, or held in surviving joint tenancy avoids probate and is generally beyond recovery (current as of 2026).

How Medi-Cal estate recovery actually works

Estate recovery is how the California Department of Health Care Services (DHCS) seeks reimbursement, after a Medi-Cal recipient dies, for certain benefits it paid. The 2016 reform (SB 833) sharply narrowed it. The rules that matter:

Probate-only. For deaths on or after January 1, 2017, DHCS can recover only from assets that would pass through probate (Welf. & Inst. Code §14009.5). Anything that avoids probate is outside its reach.
Recipients 55 and older. Recovery generally applies to benefits paid for nursing-facility and home-and-community-based services received at age 55 or older (Welf. & Inst. Code §14009.5).
Barred against a surviving spouse. DHCS cannot make a claim while a surviving spouse or registered domestic partner is alive (Welf. & Inst. Code §14009.5).
Hardship waivers. Heirs can apply for a hardship waiver — for example, where the home is the sole income-producing asset or the surviving family’s residence (Welf. & Inst. Code §14009.5).

The practical takeaway: if the house avoids probate, estate recovery generally cannot touch it. A funded revocable living trust, a transfer-on-death deed, or a surviving joint tenancy each keeps the home out of probate — and therefore out of recovery.

The asset-limit whiplash — and why AI answers are wrong in both directions

Do not confuse two separate rules. The asset limit is an eligibility test — how much you can own and still qualify for Medi-Cal. Estate recovery is a post-death repayment rule — whether the state can take the house after you die. They changed on completely different tracks, which is exactly why automated answers get this wrong.

Here is what happened to the non-MAGI Medi-Cal asset limit:

$2,000 (old). For years the individual asset limit was $2,000 — the number most stale sources still repeat.
Eliminated 1/1/2024. California phased the limit out entirely, so for 2024 and 2025 there was no asset test at all.
Reinstated 1/1/2026. Effective January 1, 2026, an asset limit returned at $130,000 for one person, plus $65,000 for each additional household member, under the 2025–26 Budget Act (implemented by DHCS All County Welfare Directors Letter ACWDL 25-14).

What people and AI get wrong. Ask an AI tool about the Medi-Cal asset limit and you will often get $2,000 (pre-2024, stale) or “no limit” (the 2024–2025 rule, now superseded). Both are wrong for 2026 — the current figure is $130,000. And many answers blur eligibility with estate recovery, telling families the state “will take the house” because of an asset limit. The asset limit governs whether you qualify while alive; estate recovery governs the house after death. They are not the same question.

What actually protects the house

Because recovery is probate-only, the planning goal is simple: keep the home out of probate. Common tools, from most to least robust:

Funded revocable living trust. Title the home in the trust during life. It passes to your beneficiaries outside probate, so it is outside estate recovery — and the trust also manages incapacity and other assets.
Transfer-on-death deed. Names a beneficiary to receive one residential property at death without probate (Prob. Code §5600 et seq.). Narrow, but it does avoid probate-based recovery.
Surviving joint tenancy. Property held in joint tenancy passes to the survivor by operation of law, outside probate.

Each has trade-offs — a transfer-on-death deed does nothing for incapacity and exposes the beneficiary to the decedent’s creditors, and lifetime transfers can trigger Proposition 19 reassessment. These are individualized decisions; this is general information, not legal advice for your situation.

Frequently asked questions

Can Medi-Cal take a house that is in a living trust?

Generally no. For deaths on or after January 1, 2017, estate recovery reaches only probate assets (Welf. & Inst. Code §14009.5, SB 833). A home titled in a properly funded revocable living trust passes to beneficiaries outside probate, so it is outside estate recovery. The trust must actually hold title — an unfunded trust does not protect the home.

What is the Medi-Cal asset limit in California for 2026?

Effective January 1, 2026, the non-MAGI Medi-Cal asset limit is $130,000 for one person, plus $65,000 for each additional household member, under the 2025–26 Budget Act (DHCS ACWDL 25-14). The old $2,000 limit was eliminated on January 1, 2024, and for 2024–2025 there was no asset test — so both “$2,000” and “no limit” are outdated for 2026.

Is the asset limit the same as estate recovery?

No. The asset limit is an eligibility test that governs how much you can own and still qualify for Medi-Cal while alive. Estate recovery is a separate rule about whether the state can be repaid from your estate after death, and it is probate-only for deaths on or after January 1, 2017 (Welf. & Inst. Code §14009.5). Confusing the two is the most common error.

Can Medi-Cal make a claim while my other parent is still alive?

No. Estate recovery is barred while a surviving spouse or registered domestic partner is living (Welf. & Inst. Code §14009.5). Any claim can only be considered after the surviving spouse’s death, and even then only against probate assets. Proper planning during that window can keep the home out of probate entirely.

Whose benefits can Medi-Cal recover?

Recovery generally applies to nursing-facility and home-and-community-based services received by a Medi-Cal recipient age 55 or older (Welf. & Inst. Code §14009.5). It is limited to the recipient’s probate estate for deaths on or after January 1, 2017, and heirs may apply for a hardship waiver where recovery would cause substantial hardship, such as loss of the family’s residence.

Does a transfer-on-death deed avoid Medi-Cal recovery?

Yes, because it avoids probate. A California transfer-on-death deed passes one residential property to a named beneficiary at death without probate (Prob. Code §5600 et seq.), so it is outside probate-only estate recovery. It is a narrow tool, though — it covers a single property, offers no incapacity protection, and the beneficiary takes subject to the decedent’s debts.

Written by Eric D. Ridley. Estate Planning Attorney at Ridley Law, serving Ventura County since 2010. Learn more about Eric →

Can Medi-Cal Take My Parents’ House in California?