Will Medi-Cal Take Your House in California? The 2026 Rules

Medi-Cal cannot take your house while you are alive, and after you die, it can only reach your house through probate. If your home passes to your heirs by some other route, a funded living trust, a transfer-on-death deed, or a surviving spouse, it is outside Medi-Cal’s reach entirely. That single fact, that California limited Medi-Cal estate recovery to the probate estate under Senate Bill 833 (SB 833, Stats. 2016, ch. 30, § 22), is the most important thing to understand if you or a parent is on Medi-Cal and worried about losing the house.

I practice trust and estate planning in Ventura, Santa Barbara, and Los Angeles Counties, and “will Medi-Cal take my house” is one of the first questions nearly every client asks. The short answer is almost always no, but getting there requires understanding two separate rules that people constantly mix up: the eligibility rule that exempts your home while you are alive, and the estate recovery rule that determines what happens to it after you die. This page walks through both, the three practical ways to keep a home out of probate, and what to check before your next Medi-Cal renewal.

Can Medi-Cal Take My House While I Am Alive?

No. Under Welfare and Institutions Code § 14006 and current DHCS guidance, an applicant’s principal residence is exempt from the Medi-Cal asset test regardless of its value. Owning a $400,000 home or a $2,000,000 home makes no difference to eligibility; the home simply does not count as an asset while you are applying for or receiving Medi-Cal.

This exemption exists alongside California’s reinstated Medi-Cal asset limit, which took effect January 1, 2026, at $130,000 for an individual applicant and $195,000 for a married couple, under Assembly Bill 116. The home sits outside that limit entirely. Other assets, cash, investments, a second property, do count toward the $130,000 or $195,000 figure, and that limit is scheduled to drop sharply on July 1, 2027. I cover that side of the picture, including what else counts and what is exempt, on a companion page: Medi-Cal asset limits in California for 2026. The point for this page is narrower: the home itself is never the problem while you are alive.

What Happens to the House After Death? Medi-Cal Estate Recovery

The home’s exempt status during life does not carry over automatically after death. This is where estate recovery comes in, and it is where the real planning decisions live.

Since SB 833, California limits Medi-Cal estate recovery to the probate estate, codified at Welfare and Institutions Code § 14009.5(f)(3). Before that change, California had allowed recovery against a broader “expanded estate,” reaching some non-probate assets. SB 833 narrowed the state’s reach to probate assets only, for deaths on or after January 1, 2017.

What that means in practice:

• If the home passes through probate, meaning it was titled in the deceased Medi-Cal recipient’s individual name with no trust, no TOD deed, and no surviving joint owner, the state’s recovery claim can reach it.
• If the home passes outside of probate, through a funded revocable living trust, a recorded transfer-on-death deed, or automatic transfer to a surviving spouse, the recovery claim cannot reach it, regardless of the home’s value.

Beyond the probate-only limitation itself, the statute builds in several independent protections that apply even when probate is involved:

• No recovery while a surviving spouse or registered domestic partner is living. The state’s claim is deferred, not eliminated, until that survivor also passes.
• No recovery against a surviving child under 21, or a surviving child of any age who is blind or disabled.
• A hardship waiver is available for a homestead of modest value, generally where the property is worth 50% or less of the average home value in the county.

These bars matter, but they are narrower than most people assume: a spouse living bars recovery only while that spouse is alive, and the disabled-child bar requires a specific disability finding. For most homeowners, the reliable way to protect the house is to keep it out of probate in the first place, which is what the rest of this page covers.

The Rule That Ties This Together

Here is the distinction I repeat to nearly every client working through Medi-Cal and a home: a living trust does not hide your assets from the Medi-Cal eligibility test, but it keeps those assets out of estate recovery after you die. Funding a trust, or recording a TOD deed, does nothing to help you qualify for Medi-Cal; the home was already exempt for eligibility purposes under § 14006 whether or not it is in a trust. What the trust, or the deed, actually does is keep the home out of probate, which is the only thing that keeps it out of the state’s recovery claim later. Confusing these two problems is the single most common mistake I see people make when trying to plan for Medi-Cal on their own.

The timing discipline that runs through asset protection planning generally applies here too. Jay Adkisson’s core observation about asset protection, that “transfers made prior to a claim are permissible, provided the debtor was solvent at the time of transfer, whereas transfers made after a claim are not allowed,” has a direct parallel in Medi-Cal planning: California’s 30-month look-back tests whether a transfer happened before the need for long-term care was on the horizon, not after. The families who protect a home successfully are almost always the ones who funded a trust or recorded a deed years before anyone needed benefits, not the ones scrambling to retitle a house after a diagnosis.

Three Ways a Home Bypasses Probate

There are three practical routes that keep a home out of the probate estate, and each comes with real tradeoffs. None of them is a universal answer, and the right choice depends on the household.

1. A Funded Revocable Living Trust

Transferring the home into a properly funded revocable living trust during life means the home is titled to the trustee, not to the individual, at death. Because the trust owns the property, there is nothing for a probate court to administer, and nothing for a probate-only recovery claim to reach.

The tradeoff: a trust only works if it is actually funded, meaning the deed itself has been changed to name the trustee, not just a signed trust document sitting in a drawer. An unfunded or partially funded trust leaves the home exactly where a recovery claim can reach it: in probate. Funding also requires some upfront effort, typically a new deed prepared and recorded, and it does nothing to speed up or simplify Medi-Cal eligibility itself, since the home was already exempt for that purpose.

2. A Revocable Transfer on Death Deed (TOD Deed)

California’s Revocable Transfer on Death Deed, under Probate Code § 5600 et seq., lets an owner name a beneficiary who receives the property automatically at death, outside of probate, without giving up any control during life. I cover the mechanics and requirements in detail on a dedicated page: the California transfer-on-death deed.

The tradeoff: a TOD deed is not a permanent fixture of California law. It is currently authorized only through January 1, 2032 unless the legislature extends it again, though deeds executed before that date remain valid even if the statute later sunsets. It also has real formality requirements, signed and dated by the owner, two witnesses present at the same time, and notarization, and it must be recorded within 60 days of notarization. A TOD deed does nothing for incapacity planning the way a trust does, it becomes void automatically if the property is held in joint tenancy or as community property with right of survivorship at death, and it can expose the beneficiary to the deceased owner’s unsecured debts up to the property’s fair market value less liens. For a single property with straightforward beneficiaries, it can be a fast, low-cost way to bypass probate; for anything more complicated, a trust remains the more complete tool.

3. Transfer to a Surviving Spouse

If the home is held in joint tenancy, or as community property with right of survivorship under Civil Code § 682.1, it passes automatically to the surviving spouse without probate administration. A surviving spouse can also use a simplified spousal property petition process (Judicial Council form DE-221) to confirm title without a full probate.

The tradeoff: this route only helps if there is a surviving spouse, and it only defers the problem. The home passes outside probate at the first spouse’s death, but it will eventually need its own plan, a trust or a TOD deed, before the surviving spouse’s own death, or it lands back in probate at that point and becomes exposed to recovery against the second estate. Spousal transfer buys time; it is not a permanent answer on its own.

The 30-Month Look-Back and 2026 Transfer Timing

Deciding to fund a trust, record a TOD deed, or retitle a home does not happen in a vacuum. California applies a 30-month look-back period for transfers connected to nursing-facility-level care, according to the DHCS asset-limit

Protecting Your House from Medi-Cal Recovery: Planning Checklist

• ☐ Check how the home is titled right now: individual name, joint tenancy, or trust
• ☐ If a trust exists, confirm the home’s deed actually names the trustee, not just the individual
• ☐ If a trust is not realistic right now, evaluate recording a TOD deed instead
• ☐ Confirm any spousal survivorship mechanism and plan for the second death, not just the first
• ☐ Review any transfers of the home or other assets in the last 30 months
• ☐ Note whether each transfer occurred before or after January 1, 2026
• ☐ Confirm the current $130,000 individual / $195,000 couple countable-asset limit against actual non-home assets
• ☐ Calendar July 1, 2027, when the countable-asset limit drops sharply

FAQ. That is shorter than the 60-month look-back used federally in most other states; California has never adopted the 60-month standard.

The reinstatement of the asset limit also carries a specific transition rule:

• Transfers made before January 1, 2026 are not penalized under the reinstated asset-limit rules.
• Transfers made on or after January 1, 2026 can trigger a period of ineligibility if they fall within the 30-month look-back and were made for less than fair market value.

This does not usually affect funding a revocable trust with your own home, since you retain full beneficial ownership and control of a revocable trust’s assets, and the transfer is not treated as a disqualifying gift. It matters most for outright transfers or gifts of the home to someone else, which is a different, higher-risk move than the three probate-avoidance routes described above.

Why 2026 Is the Year to Finish This, Not 2027

California’s Medi-Cal asset limit is scheduled to fall from $195,000 to $31,000 for a couple, and from $130,000 to $21,000 for an individual, on July 1, 2027, under current law. The home remains exempt for eligibility either way, but the 2027 change compresses the runway for anyone still holding countable assets above the coming limit, and it is a reminder that Medi-Cal rules in California move on their own schedule regardless of when a family gets around to funding a trust or recording a deed. Waiting until a health crisis forces the issue removes the 30-month look-back cushion that exists right now for anyone who acts today.

Do This Before Your Next Medi-Cal Renewal

1. Check how the home is titled today. Individual name alone means probate, and probate means the recovery claim can reach it.
2. If a trust exists, confirm the home has actually been deeded to the trustee. A trust document that was never funded with the deed protects nothing.
3. If a trust is not realistic right now, evaluate a TOD deed as a faster, lower-cost way to route the home around probate, understanding its limits on incapacity planning and its 2032 sunset.
4. If a spouse is the current owner or co-owner, confirm the survivorship mechanism (joint tenancy, CPWROS, or a spousal property petition path) and plan for what happens at the second death, not just the first.
5. Review any transfers of the home or other assets in the last 30 months and note whether each occurred before or after January 1, 2026.
6. Calendar July 1, 2027. Even though the home itself stays exempt, this is the date the rest of the household’s countable assets face the sharper limit.

Frequently Asked Questions

Can Medi-Cal take my house while I am alive?

No. Under Welfare and Institutions Code § 14006, an applicant’s principal residence is exempt from the Medi-Cal asset test while they are alive, regardless of its value. The home does not count toward the $130,000 individual or $195,000 couple asset limit that took effect January 1, 2026.

Does a living trust protect my house from Medi-Cal?

It protects the house from estate recovery after death, not from the eligibility test during life. A living trust does not hide your assets from the Medi-Cal eligibility test, but it keeps those assets out of estate recovery after you die. The home was already exempt for eligibility under § 14006 whether or not it sits in a trust; what a properly funded trust does is keep the home out of probate, which is the only place California’s SB 833 recovery claim can reach.

What is Medi-Cal estate recovery?

Medi-Cal estate recovery is the state’s process for seeking reimbursement, after a Medi-Cal recipient’s death, for certain benefits paid during their lifetime. Since SB 833 (Stats. 2016, ch. 30, § 22) and Welfare and Institutions Code § 14009.5(f)(3), recovery in California is limited to the recipient’s probate estate. Assets that pass outside of probate, through a funded living trust, a transfer-on-death deed, or survivorship to a spouse, are outside the recovery claim. Recovery is also barred while a surviving spouse or registered domestic partner is living, barred against a surviving child under 21 or a blind or disabled child of any age, and subject to a hardship waiver for a modest-value homestead.

Medi-Cal eligibility and estate recovery rules change, and how a specific home is titled, and how a specific family is situated, changes the analysis. This page is attorney-authored general information as of the date above, not legal advice for your situation. Verify current rules with the Department of Health Care Services before relying on any figure here, and confirm your own trust is actually funded before assuming it protects anything.

Related reading: Medi-Cal asset limits in California for 2026, Medi-Cal income limits in 2026, the California transfer-on-death deed, and what a living trust attorney actually does. If you want to know what a full plan costs, see our flat fees.

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