Short answer – Medi-Cal has an asset limit again. Since January 1, 2026, non-MAGI Medi-Cal disregards $130,000 in nonexempt property for one person plus $65,000 for each additional household member (Welf. & Inst. Code §14005.62), and a 2026 law cuts that to $21,000 for one person and $31,000 for two, no sooner than July 1, 2027. Gifts made to qualify can trigger a penalty period (Welf. & Inst. Code §14015), and after death the state can only recover from the probate estate (Welf. & Inst. Code §14009.5(f)(3)).
A family with $120,000 in savings that qualifies for Medi-Cal today may not qualify at renewal after July 2027, and the months before then are the planning window. Medi-Cal planning in Ventura County runs on state and federal law, and the county’s role is processing the application. What changed in 2026 is the asset test, and the change isn’t finished, so a plan built on the old rules may not hold.
Law verified against Welfare and Institutions Code §§14005.62, 14009.5 and 14015, Stats. 2026, ch. 27 (SB 164), 42 U.S.C. §1396p, and Probate Code §4264, 2026. This page is general information, not legal advice for your situation.
The current limit: $130,000 for one person, $195,000 for a couple
One person can keep $130,000 in nonexempt property, and each additional household member adds $65,000, up to ten members. For applicants whose eligibility isn’t determined under the modified adjusted gross income (MAGI) method, the law directs the Department of Health Care Services to seek federal approval for, and implement, that disregard (Welf. & Inst. Code §14005.62(a)(1)). It took effect no sooner than January 1, 2026 (Welf. & Inst. Code §14005.62(a)(2)). A married couple’s household therefore has a $195,000 disregard.
Exempt property doesn’t count against the limit, so the exempt list decides most cases. The statute directs the department to issue instructions that list all exempt property until regulations are adopted (Welf. & Inst. Code §14005.62(b)(1)). Check it before assuming an asset counts. More detail is on my Medi-Cal asset limit page.
The limit is scheduled to fall to $21,000 for one person
Under current law, the $130,000 limit has an end date, and the replacement is $21,000 for a one-person household, $31,000 for two, and $1,550 for each additional member, no sooner than July 1, 2027. SB 164 (Stats. 2026, ch. 27) makes the $130,000 version inoperative on July 1, 2027 (Stats. 2026, ch. 27, §68), and the replacement is operative no sooner than that date (Stats. 2026, ch. 27, §69, adding Welf. & Inst. Code §14005.62(a)).
People already enrolled on that date face the new limit starting with their first annual redetermination on or after it (Stats. 2026, ch. 27, §69, §14005.62(b)).
Gifts made to qualify can trigger a penalty period
Giving assets away to get under the limit can mean a stretch when Medi-Cal won’t pay for home and facility care. A transfer for less than fair market value results in a period of ineligibility for home and facility care, applied under federal law (Welf. & Inst. Code §14015(a)(1)). That section became operative January 1, 2026 (Welf. & Inst. Code §14015(h)). Transfers made before the look-back period set by the department are presumed not made to qualify and aren’t considered (Welf. & Inst. Code §14015(c)). Federal law sets the look-back at 60 months for most transfers made after February 8, 2006 (42 U.S.C. §1396p(c)(1)(B)(i)). How California phases that in is covered in the Medi-Cal look-back phase-in.
Some transfers carry no penalty. California lists, among others, assets that were exempt when transferred, transfers for adequate consideration, and transfers the applicant proves were made for a reason other than qualifying (Welf. & Inst. Code §14015(b)). Under federal law, a home can go without penalty to a spouse, a child under 21, a blind or disabled child, a sibling with an equity interest who lived there at least a year before the applicant entered a facility, or a son or daughter who lived there at least two years and provided care that kept the parent at home (42 U.S.C. §1396p(c)(2)(A)). Transfers to a spouse, or to a trust solely for a blind or disabled child, are also protected (42 U.S.C. §1396p(c)(2)(B)). See can I give away assets to qualify for Medi-Cal.
A living trust doesn’t move savings under the limit
Putting savings in your living trust doesn’t move them under the limit. The corpus of a revocable trust is treated as a resource available to the person who created it (42 U.S.C. §1396p(d)(3)(A)(i)).
A living trust does matter after death, because estate recovery reaches only the probate estate, as the next section explains. For the difference between the two questions, see Medi-Cal and your living trust.
After death, the state can recover only from the probate estate
Medi-Cal can claim against a house only in limited cases, and only from the probate estate. The Department of Health Care Services may claim against the estate of a member who received services at 55 or older, or against the real property of certain nursing facility residents (Welf. & Inst. Code §14009.5(b)). “Estate” means the property in the member’s probate estate that federal law requires to be subject to recovery (Welf. & Inst. Code §14009.5(f)(3)). A house held in a funded living trust isn’t part of the probate estate.
A surviving family member can block the claim. The department can’t claim under the age-55 rule at all when the member leaves a surviving spouse or registered domestic partner, a child under 21, or a blind or disabled child (Welf. & Inst. Code §14009.5(b)(2)(B)). Hardship can block it too. The department must waive a claim that would cause substantial hardship, including, subject to federal approval, when the estate is a homestead of modest value, meaning a home worth 50 percent or less of the average home price in the county (Welf. & Inst. Code §14009.5(c), (f)(5)). Members 55 and older can ask the department for the amount it could recover, for a fee of up to $5, once per calendar year (Welf. & Inst. Code §14009.5(e)(1)). More in Medi-Cal estate recovery in 2026.
The power of attorney decides which options are open
Most Medi-Cal planning happens after someone has lost the ability to sign, so the agent under a durable power of attorney does the work. An agent can make gifts, create or change a trust, or change survivorship interests only if the power of attorney expressly grants that authority (Prob. Code §4264). A generic form often doesn’t. If the document is silent, the planning options narrow, and the fallback is a court proceeding the planning was meant to avoid.
Ventura County processes the application and sets none of the rules
In Ventura County, Medi-Cal is administered by the county Human Services Agency, and you can apply online at BenefitsCal.com or through the agency. The eligibility rules are the state and federal rules above. Nothing about the asset limit, the gift penalty, or estate recovery is set locally.
What a Ventura County family should do now
- Inventory assets and title. Separate what’s exempt under the department’s list from what counts toward the $130,000 disregard, and model the result against the scheduled $21,000 limit.
- Review the power of attorney for express gifting and trust authority under Prob. Code §4264.
- Fund the living trust to keep the house out of the probate estate that estate recovery reaches. It doesn’t help eligibility.
- Don’t give anything away until you’ve checked it against §14015 and the federal exemptions.
My Medi-Cal planning page explains how I handle this work. Planning is by phone and Zoom, and a mobile notary comes to you or your parent for signing.
Frequently asked questions
What is the Medi-Cal asset limit in 2026?
For applicants whose eligibility isn’t determined under the modified adjusted gross income (MAGI) method, the law directs the Department of Health Care Services to seek federal approval for, and implement, a disregard of $130,000 in nonexempt property for a one-person case and $65,000 for each additional household member, up to ten members (Welf. & Inst. Code §14005.62(a)(1)).
Is the asset limit going down?
Yes, under current law. SB 164 makes the $130,000 version inoperative on July 1, 2027, and the replacement sets a resource limit of $21,000 for a one-person household and $31,000 for two, operative no sooner than July 1, 2027 (Stats. 2026, ch. 27, §§ 68, 69).
What happens if I give away assets before applying?
A transfer for less than fair market value results in a period of ineligibility for home and facility care, applied under federal law (Welf. & Inst. Code §14015(a)(1)).
Does a living trust protect assets from Medi-Cal?
Not for eligibility. The corpus of a revocable trust is treated as a resource available to the person who created it (42 U.S.C. §1396p(d)(3)(A)(i)).
Can Medi-Cal take my house after I die?
Only in limited cases, and only from the probate estate. The Department of Health Care Services may claim against the estate of a member who received services at 55 or older, or against the real property of certain nursing facility residents (Welf. & Inst. Code §14009.5(b)).
Why does my power of attorney matter for Medi-Cal planning?
Most Medi-Cal planning happens after someone has lost the ability to sign. At that point the agent under a durable power of attorney does the work.
How does the Ventura County application work?
In Ventura County, Medi-Cal is administered by the county Human Services Agency, and you can apply online at BenefitsCal.com or through the agency.
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