This is  a common question for many people who apply for assistance to pay for nursing home care. For most Americans, the home is the biggest asset that a person has to pass on to children.

Under Medi-Cal regulations, a primary residence is an exempt asset. It is not considered when calculating eligibility for Medi-Cal. However, it is exposed to the estate recovery process. There are ways to protect it. For example, if it is held as joint tenants or placed in a living trust it can avoid the probate court process.

Estate recovery takes place upon the death of the Medi-Cal recipient. At that time, federal law requires that California attempt to recover the benefits paid from assets the recipient owned in his/her name alone or jointly with another. If the recipient was married, the state will not seek recovery until the death of the spouse.

Most nursing home residents’ costs are paid by Medi-Cal. Therefore, the estate recovery law affects many families.