It is important to remember that the Medi-Cal rules are constantly changing so I do recommend that you contact an attorney there to make sure your brother’s trust is in compliance. Medicaid in California allows a person who is residing in or intends to return to the real property an exemption for real property up to a value of $750,000 (with further exceptions if a spouse, minor child, or disabled child is residing in the home). At age 55, if your brother holds exempt assets in his own name and enters into a facility, then the estate recovery rules begin to apply. These rules allow the state to recover assets that are in the disabled person’s own name or a trust funded with assets that were owned by the disabled person. Estate recovery is not permitted, at this time, for assets that are held for the disabled person’s benefit but were never in the disabled person’s name. Let me know if you have any further questions.

Thank you,
Misty Watson