What You Need to Know About California Medi-Cal Asset Limits

For two years, from January 1, 2024 through December 31, 2025, California stood alone among American states. Non-MAGI Medi-Cal had no asset limit at all. A 92-year-old widow with a million dollars in the bank could qualify for full-scope Medi-Cal long-term-care benefits, paying nothing more than her income share-of-cost. No other state in the country had eliminated its asset test.

That two-year experiment ended on January 1, 2026. Asset limits returned, but at levels far higher than what California had before, and far higher than any other state's traditional Medicaid asset rules. AB 116 (Chapter 21, Statutes of 2025) set the new floor at $130,000 for an individual, $195,000 for a couple, and +$65,000 for each additional household member.

This guide explains what changed, what stayed exempt, who's protected from the reinstatement entirely, how California's spousal impoverishment rule still beats every other state, why transfers made during 2024-2025 are bulletproof, and how the HCBS waiver carve-out quietly preserves California's status as the most favorable elder-law-planning state in America.

The 60-Second Version

• Effective January 1, 2026, non-MAGI Medi-Cal has asset limits again. AB 116 (Ch. 21, Stats. 2025), implemented via DHCS All-County Welfare Directors Letter (ACWDL) 25-18, sets the limits at $130,000 individual / $195,000 couple / +$65,000 per additional household member, about 65 times higher than the pre-2022 federal floor of $2,000/$3,000.
• Transfers made between 1/1/2024 and 12/31/2025 are permanently shielded. Counties cannot review or penalize asset transfers made during the no-asset-test window, even for nursing-facility applications. Assets you currently own, however, are subject to the $130K/$195K limit regardless of when you acquired them.
• Four eligibility categories are EXEMPT from the reinstated asset limit entirely: SSI-linked Medi-Cal recipients (limits remain $2,000/$3,000 per federal SSI rules), Pickle Amendment recipients, Disabled Adult Children under §1634(c), and Disabled Widow(er)s under §1634(b).
• California's spousal impoverishment rule applies to ALL HCBS waivers + IHSS + §1915(i) under W&I §14005.41. Only about 10 states extend it this broadly. 2026 community spouse resource allowance: $162,660. Combined with AB 116, a married couple seeking HCBS Medi-Cal can hold approximately $292,660 in protected assets.
• The federal 60-month look-back returned 1/1/2026, but California capped its maximum at 30 months. The look-back grows from 1 month for January 2026 applications by 1 month each subsequent month, reaching 30 months by July 2028. California's adopted maximum is 30 months, not the federal 60. Penalties are calculated using the 2026 Average Private Pay Rate (APPR) of $14,440/month.
• HCBS waiver applications are completely exempt from the transfer penalty. Asset transfers do NOT trigger penalty periods for HCBA, ALW, MSSP, SDP, IHSS, CBAS, or PACE applicants, only for nursing-facility (NF) Medi-Cal applications. This is the single most powerful planning lever in California elder law.
• Non-MAGI income limit remains the Aged & Disabled Federal Poverty Level program at approximately $1,836/month individual / $2,490/month couple in 2026 (effective 4/1/2026). Above the income limit, applicants enter the Medically Needy program with Share-of-Cost. California is NOT a "Miller Trust" state and never has been.
• MAGI Adult Expansion enrollees (under 65, non-disabled, ages 19-64 with income up to 138% FPL) have NO asset limit. Asset limits only apply to non-MAGI categories.

Background: How Medi-Cal Got Here

To understand California's asset rules, you have to understand the unusual three-stage trajectory of the past four years.

Stage 1: The Federal Floor (Pre-July 2022)

For decades, California followed the federal Medicaid asset rules under 42 U.S.C. §1396a, $2,000 for an individual / $3,000 for a couple, with categorical exemptions (the home up to a state-set equity cap, one car, household goods, an irrevocable burial trust, term life insurance with face value under $1,500, and retirement accounts in periodic distribution mode). The federal floor traces to 42 U.S.C. §1382(a)(3) for SSI-linked Medicaid.

Stage 2: AB 133 Phase-In (July 2022 - December 2023)

AB 133 (Stats. 2021, Ch. 143) authorized California to phase out non-MAGI asset limits in two stages:

• Phase 1 (effective 7/1/2022): Asset limits raised to $130,000 individual / $195,000 couple, with an additional $65,000 per dependent
• Phase 2 (effective 1/1/2024): Asset limits eliminated entirely for non-MAGI Medi-Cal

The phase-in was designed to bring California into alignment with the Master Plan for Aging's vision, easing the asset spend-down barrier that historically pushed seniors out of community-based care and into nursing facilities.

Stage 3: AB 116 Reinstatement (Effective 1/1/2026)

By late 2024, California's general fund pressures had grown significant. The 2024-25 budget projected a multi-billion-dollar shortfall, and the no-asset-test policy had not been forecast accurately when first adopted. AB 116 (Maienschein, Chapter 21, Statutes of 2025) signed in mid-2025 reinstated asset limits, but at the Phase 1 levels, not the pre-2022 federal floor.

DHCS implementation: All-County Welfare Directors Letter (ACWDL) 25-18 issued late 2025, governing operationalization at the 58 county welfare departments effective January 1, 2026.

The 2026 Asset Limits

Non-MAGI Categorical Programs (the AB 116 reinstatement)

For Medi-Cal applicants and recipients in the Aged, Blind, and Disabled categorical program, including the Aged & Disabled Federal Poverty Level (A&D FPL) program, the Medically Needy program with Share-of-Cost, the 250% Working Disabled Program, the Long-Term Care (LTC) program, and most HCBS waiver enrollees, the 2026 asset limits are:

A family of four where one parent is the applicant, the other parent is the community spouse, and there are two minor children: the asset limit is $195,000 + $65,000 + $65,000 = $325,000.

SSI-Linked Medi-Cal (NO change)

For Medi-Cal applicants linked to Supplemental Security Income (SSI) under §1634 conversion authority, the federal SSI asset limits remain:

These limits are set by federal law at 42 U.S.C. §1382(a)(3) and have not changed since 1989. SSI-linked Medi-Cal recipients can choose to switch to the A&D FPL program or another non-MAGI category to take advantage of the higher AB 116 limits, county social workers can guide this redetermination.

MAGI Categories (NO asset limit at all)

For Medi-Cal applicants in the MAGI Adult Expansion category (ages 19-64, non-disabled, household income up to 138% of the federal poverty level under the ACA), there is no asset test of any kind. Same for MAGI children's Medi-Cal, MAGI parent/caretaker, MAGI pregnant women, and the MAGI ACA Adult Expansion. Asset limits in California apply only to non-MAGI categorical programs.

Spousal Impoverishment / LTC and HCBS

When one spouse applies for Medi-Cal LTC (nursing facility) or an HCBS waiver, federal spousal impoverishment rules under 42 U.S.C. §1396r-5 protect the community spouse (the spouse remaining in the home). California is one of about 10 states that extends spousal impoverishment to all §1915(c) HCBS waivers, IHSS, and §1915(i) under W&I §14005.41. Most states limit spousal impoverishment to nursing-facility applicants only.

2026 Community Spouse Resource Allowance (CSRA), federal maximum approach:

• Community spouse keeps the lesser of total countable resources or $162,660 (the 2026 federal maximum per the CMS CIB issued 12/9/2025)
• Plus the applicant spouse's $130,000 AB 116 limit

Combined effect: A married couple where one spouse needs HCBS waiver care can preserve $162,660 (CSRA) + $130,000 (applicant spouse asset limit) = approximately $292,660 in countable resources, far above traditional federal Medicaid rules. With proper planning around the home-equity exemption, the entire family residence can be retained as well.

2026 Monthly Maintenance Needs Allowance (MMMNA):

• Minimum: $2,643.75/month (effective 7/1/2025, per CMS CIB 12/9/2025)
• Maximum: $4,066.50/month (federal cap effective 1/1/2026)
• Standard Utility Allowance (SUA): $793.13

What Stays Exempt from Asset Counting

Even at the new $130,000 limit, certain assets do NOT count toward the limit. These exemption categories did NOT change with AB 116. They are codified federal and state rules unchanged by the 2024 elimination or the 2026 reinstatement.

Categorically Exempt Assets

1. Principal Residence. California exempts the home with no equity cap when the recipient or community spouse occupies it, OR when the home is jointly owned with a non-applicant spouse, OR when the recipient intends to return home (subjective intent test). For nursing-facility applicants without an at-home spouse, the federal home equity limit under 42 U.S.C. §1396p(f) applies. The 2026 federal limit is published in the CMS January 2026 SSI/Spousal CIB. Confirm the current figure with your county worker before applying.
2. One Motor Vehicle. No value cap.
3. Household Goods and Personal Effects. No value cap; furniture, appliances, clothing, jewelry under reasonable sentimental and use thresholds.
4. Irrevocable Burial Trusts. Up to $1,500 per person plus burial plot.
5. Term Life Insurance. No cash value, no exemption cap.
6. Whole Life Insurance with Face Value at or under $1,500 per person. Cash value above $1,500 is countable.
7. Retirement Accounts (IRA, 401(k), 403(b)) in Periodic Distribution Mode. California treats accounts in required-minimum-distribution status as income only. The principal is not countable as an asset. Pre-distribution retirement accounts are countable.
8. Properly Drafted Special Needs Trusts. Including (d)(4)(A) self-settled SNTs, (d)(4)(B) Miller-style QITs (not used in California, see below), and (d)(4)(C) pooled SNTs, all under 42 U.S.C. §1396p(d)(4).
9. CalABLE accounts. Account balance up to $100,000 exempt for SSI continuation (above $100,000 suspends SSI but does NOT disqualify Medi-Cal eligibility). Confirm the current federal annual contribution limit with your account administrator.
10. Property Producing Income at FMV. Rental properties, farm land, business assets producing fair-market-value income are exempt under 22 CCR §50402.

California-Specific Exemptions

• Recreational vehicles, boats, and second vehicles are countable assets at fair market value.
• Real property other than the home is countable, except for income-producing property (above) and certain tribal land allotments.
• Cryptocurrency, brokerage accounts, mutual funds, certificates of deposit are all countable at fair market value.

Four Categories Completely EXEMPT from Asset Reinstatement

This is the most underappreciated provision of AB 116. Four eligibility categories are completely exempt from the 1/1/2026 reinstatement and continue under the 1/1/2024–12/31/2025 no-asset-test rules indefinitely.

1. SSI-Linked Medi-Cal (Federal SSI Continues)

Recipients of federal Supplemental Security Income (SSI) automatically receive Medi-Cal under §1634 conversion authority. SSI's federal asset limits, $2,000 individual / $3,000 couple, remain unchanged at 42 U.S.C. §1382(a)(3). These limits are stricter than AB 116's $130,000 / $195,000, but SSI-linked Medi-Cal recipients can switch to A&D FPL non-MAGI Medi-Cal during their next redetermination if doing so improves their eligibility (e.g., they have $50,000 in countable assets, exceeding SSI's $2,000 cap but within AB 116's $130,000).

2. Pickle Amendment (1977)

Recipients who would still qualify for SSI but for cost-of-living adjustments to Social Security since their last SSI eligibility, known as Pickle Amendment beneficiaries (Section 503 of P.L. 94-566, 1977), are EXEMPT from the asset reinstatement. Pickle eligibility is determined by reverse-COLA-adjusting the recipient's current Social Security to the date they last received SSI; if the adjusted amount is below current SSI limits, they remain Medi-Cal-eligible without an asset test. ACWDL c07-28 governs Pickle determinations in California.

3. Disabled Adult Children (DAC, §1634(c))

Adult children who are disabled and receive Social Security Disabled Adult Child (DAC) benefits based on a deceased, disabled, or retired parent's work record, and who would have been SSI-eligible but for the DAC benefit, are EXEMPT from the asset reinstatement under §1634(c) of the Social Security Act.

4. Disabled Widow(er)s (DWW, §1634(b))

Disabled widows and widowers receiving Social Security Survivor benefits who would have been SSI-eligible but for the survivor benefit are EXEMPT under §1634(b).

Why these four matter: California's elder-law and disability-law communities have used these categories for decades to preserve Medi-Cal access for individuals with substantial assets. With AB 116 reinstating asset limits for the general non-MAGI population, these four categories become disproportionately important, and re-establishing eligibility under these categories becomes a high-value planning move for affected applicants.

The Transfer-Penalty Rules

When you transfer assets out of your name within a certain look-back period, Medi-Cal can impose a transfer penalty, a period during which Medi-Cal LTC benefits are denied. The federal framework is at 42 U.S.C. §1396p(c).

The 2024-2025 Transfer Window (Permanently Shielded)

Transfers made between January 1, 2024 and December 31, 2025 are PERMANENTLY SHIELDED. Counties cannot review or penalize asset transfers made during the no-asset-test window, regardless of when the application is filed. AB 116 and DHCS ACWDL 25-18 both confirm this point. If grandma gifted her home to her son on December 15, 2025, that transfer cannot trigger a Medi-Cal penalty period, even if the son later applies for LTC Medi-Cal in 2030.

This is unique. No other state has a comparable "shielded window" rule, because no other state had a period of no-asset-test Medicaid.

Important distinction: the shielding applies to transfers (assets given away during the window). It does not create a separate shield for assets you still hold. Assets currently in your name are subject to the $130,000 / $195,000 limit regardless of when you acquired them.

The Phased Look-Back Ramp (1/1/2026 onward)

California elected a 30-month maximum look-back, not the federal 60 months, and phased it in starting January 1, 2026:

This ramp gives California families a graduated transition from "no look-back at all" (during 2024-2025) to California's adopted 30-month maximum. California's 30-month cap, shorter than the federal 60-month standard, was an election under AB 116 and ACWDL 25-18.

The Average Private Pay Rate (APPR) Divisor, 2026 Value

When a transfer triggers a penalty, the penalty period is calculated by dividing the value of the uncompensated transfer by the 2026 Average Private Pay Rate (APPR):

2026 APPR = $14,440/month (up from $13,656/month in 2025)

The APPR represents the statewide average monthly cost of nursing-facility care in California; it is recalculated annually by DHCS based on Medi-Cal rate-setting data.

Worked example: A senior gifts $144,400 to her daughter on March 15, 2026. She applies for nursing-facility Medi-Cal on March 1, 2027. Look-back at March 2027 is 14 months (the ramp adds one month per month after January 2026). The transfer is within look-back. Penalty: $144,400 ÷ $14,440 = 10 months of LTC denial. Medi-Cal will not pay for nursing-facility care for those 10 months; the family must private-pay or find alternative coverage.

What Transfers DON'T Count

Several transfer categories are exempt from the penalty:

1. Transfers to a spouse (any amount, any time)
2. Transfers to a disabled child (any age, any amount)
3. Transfers to a trust for the sole benefit of a disabled person under 65
4. Transfers of the home to a "caregiver child" who lived in the home and provided care for at least 2 years that delayed institutionalization
5. Transfers of the home to a "sibling with equity interest" who lived in the home for at least 1 year before institutionalization
6. Transfers for fair market value (the Medi-Cal-mature caregiver agreement is the prime example, see below)
7. Transfers shown to be made for a purpose other than qualifying for Medicaid

The HCBS Carve-Out: California's Singular Planning Advantage

This provision changes the entire elder-law calculus in California, and almost no competing eldercare website explains it correctly.

The asset-transfer penalty applies ONLY to nursing-facility (NF) Medi-Cal applications. It does NOT apply to:

• HCBA waiver applications
• ALW waiver applications
• MSSP waiver applications
• Self-Determination Program (SDP) applications
• IHSS applications
• CBAS applications
• PACE applications

DHCS confirmed this point in multiple ACWDLs, and the California Advocates for Nursing Home Reform (CANHR) has highlighted it repeatedly.

Why this matters in practice:

• A senior who gifts her daughter $200,000 on January 15, 2026 cannot apply for nursing-facility Medi-Cal without triggering a 13.85-month penalty period.
• That same senior can apply for HCBA, ALW, MSSP, IHSS, or PACE in 2026 immediately, with no transfer penalty whatsoever.
• If she ever needs nursing-facility care in the future, the transfer penalty applies at that point, but if she remains in the community on HCBS waivers, the penalty never materializes.

This is the single most powerful elder-law planning lever in California. It does not exist in Texas, Florida, Tennessee, Michigan, Arizona, Nevada, or any other state we've reviewed. California elder-law attorneys routinely structure asset transfers around this carve-out to preserve family wealth while the senior receives community-based care.

For more detail on the underlying programs, see our HCBS Waivers Guide and Long-Term Care Guide.

How AB 116 + Spousal Impoverishment Stack

The mathematical interaction between AB 116 and California's broad spousal-impoverishment rule is where elder-law planning becomes most valuable.

Worked Example: Married Couple, One Spouse Needs HCBS

The Lopez family lives in San Diego. Maria is 78, healthy, lives at home. Tomás is 80 with mid-stage Alzheimer's, needs in-home care. They have:

• $325,000 in joint countable assets (savings, brokerage, cash value of life insurance)
• A home worth $850,000 (no mortgage, exempt as principal residence)
• One car worth $18,000 (exempt)
• Tomás's monthly Social Security: $2,400
• Maria's monthly Social Security: $1,800

The Asset Math

Without spousal impoverishment, Tomás's eligibility would require him to spend down to $130,000 before qualifying. But because of W&I §14005.41 extending spousal impoverishment to HCBS waivers:

• Maria's CSRA (Community Spouse Resource Allowance, 2026 federal max): $162,660
• Tomás's applicant asset limit (AB 116 individual): $130,000
• Combined protected resources: $292,660

Spend-down required: $325,000 − $292,660 = $32,340.

The Transfer Strategy with HCBS Carve-Out

If the Lopez family's elder-law attorney wants to preserve the entire $325,000:

• They can transfer $32,340 to Maria (any amount, any time, spousal transfers are exempt)
• Or they can transfer $32,340 to a disabled adult child (any amount, exempt)
• If they have neither option, they could transfer $32,340 to a third party with the planned application being HCBA waiver instead of nursing facility. The HCBS carve-out means no transfer penalty applies.

In Texas, Florida, or Tennessee, that third-party transfer would trigger a multi-month penalty period denying any community-based Medicaid care. In California, the family receives HCBA enrollment immediately with the third-party gift undone.

The Income Math

• Tomás's gross income: $2,400/month
• A&D FPL income limit (eff. 4/1/2026): approximately $1,836/month single
• Excess income: approximately $564/month over A&D FPL
• Tomás falls into the Medically Needy program with Share-of-Cost (Tomás pays his Share-of-Cost toward care; Medi-Cal pays the rest)

Note on income standards: California's institutional LTC income cap is 300% SSI FBR = $2,982/month for 2026, but the HCBS waiver income door is the A&D FPL program (approximately $1,836/month single) or Medically Needy/Share-of-Cost. Tomás's $2,400 puts him over A&D FPL but well under the institutional cap; he enters HCBS via Medically Needy with Share-of-Cost.

For Maria as the community spouse:

• MMMNA 2026 maximum: $4,066.50/month
• Maria's own income: $1,800/month
• Income gap: $2,266.50/month
• MMMNA shifts Tomás's excess income (above $35 PNA) to Maria until her total reaches $4,066.50/month
• Net effect: Maria keeps essentially all of her income, plus enough of Tomás's income to bring her total to $4,066.50; only $35 of Tomás's income covers his $35 Personal Needs Allowance

The financial result: the couple keeps their home, $292,660 in liquid assets, and approximately $4,066.50/month in household income, while Tomás receives full HCBS waiver coverage at no out-of-pocket cost to the family.

Why California Is Not a "Miller Trust" State

A common confusion in eldercare planning: California is NOT a "Miller Trust" state and never has been.

Miller Trusts (Qualified Income Trusts, or QITs) are required in income-cap states, states where Medicaid sets a hard income ceiling for LTC eligibility (typically 300% of the SSI federal benefit rate). In income-cap states like Texas, Florida, Arizona, Tennessee, and Nevada, an applicant whose Social Security exceeds the cap must establish a QIT/Miller Trust to redirect excess income into the trust, where it remains countable as Medicaid-funded care payments rather than personal income.

California uses an entirely different system. California is a "medically needy" state under the optional categorical eligibility framework at 42 U.S.C. §1396a(a)(10)(C). California has no hard income cap for non-institutional categories. Applicants whose income exceeds the A&D FPL limit (approximately $1,836/month single in 2026) automatically fall into the Medically Needy program with Share-of-Cost.

Share-of-Cost is the difference between the applicant's monthly income and the Maintenance Need Level (MNL), currently $600 single / $934 couple. Applicants pay first-dollar costs equal to their share-of-cost each month; Medi-Cal pays the rest.

Practical result: Californians migrating from Texas, Florida, or Arizona who set up Miller Trusts in those states should NOT replicate the structure in California. They should simply enroll in California's A&D FPL or Medically Needy/Share-of-Cost programs as appropriate.

How to Apply With Asset-Limit Planning in Mind

Application logistics are covered in detail in our Medi-Cal Application Guide. For asset-limit-aware applications:

1. Choose the right eligibility category before applying. A senior with $100,000 in assets is over the SSI-linked $2,000 cap but within AB 116's $130,000. Apply directly under A&D FPL or HCBA waiver rather than triggering a denial under SSI-linked rules.
2. Document Pickle, DAC, or DWW status if applicable. These categories are easily missed by county social workers. Bring documentation.
3. For LTC applications, gather 3 years of bank statements (rising to 30 months by July 2028). The look-back ramp means county workers will request increasing volumes of historical financial records.
4. For HCBS waiver applications, do NOT submit transfer documentation. The HCBS carve-out means transfers are not relevant; submitting transfer documents can confuse county workers and slow processing.
5. For couples seeking spousal impoverishment, request a "Resource Assessment", a snapshot of countable assets as of the institutionalization or HCBS waiver eligibility date. This locks in the CSRA calculation.
6. Engage a California elder-law attorney for transfer planning before applying. California State Bar Trusts & Estates Section maintains a referral directory.

Common Pitfalls

1. Treating California like a Miller Trust state. A QIT is unnecessary and can create unnecessary administrative complexity. Use A&D FPL or Medically Needy with Share-of-Cost instead.

2. Missing Pickle, DAC, or DWW status. Counties don't automatically screen for these statutorily exempt categories. Ask for the determination, especially if your client previously received SSI or is on Social Security DAC/DWW benefits.

3. Forgetting that MAGI categories have no asset test. A 60-year-old caregiving for an elderly parent who has the parent enrolled in MAGI Adult Expansion does not need to worry about asset limits at all, even with $500,000 in savings.

4. Confusing the two-year shielded transfer window with current-period transfers. A transfer made on December 31, 2025 is permanently shielded. A transfer made on January 1, 2026 falls under the look-back ramp. These two days are months apart in legal consequence.

5. Triggering NF transfer-penalty rules when you could have applied for HCBS. This is the single most common avoidable error in California elder-law planning. If a senior recently transferred assets and now needs care, applying for HCBA, ALW, MSSP, or PACE, rather than nursing-facility Medi-Cal, completely avoids the transfer penalty.

6. Counting retirement accounts in distribution mode as assets. Once an IRA, 401(k), or pension is in periodic-distribution / required-minimum-distribution mode, it is treated as income only under California's rules, not as a countable asset.

7. Failing to reposition assets between spouses. When one spouse is the applicant and the other is the community spouse, transfers between spouses are exempt and unlimited. A common planning move is to retitle joint accounts to the community spouse before applying.

8. Selling the home to "spend down" assets. California exempts the principal residence with no equity cap if a community spouse occupies it. Selling the home converts an exempt asset into countable cash. Almost always a mistake.

9. Forgetting California Partnership for LTC asset disregard. Existing California Partnership for LTC policyholders (issued before 2014) retain a Medi-Cal asset disregard equal to total benefits paid out under the policy, under W&I Code §14006(b). This is separate from AB 116's $130,000 limit.

10. Failing to claim Special Needs Trust protection. Properly drafted (d)(4)(A), (d)(4)(B), or (d)(4)(C) Special Needs Trusts under 42 U.S.C. §1396p(d)(4) shelter the recipient's own funds for Medi-Cal eligibility. The CalABLE Pooled SNT is one California-administered option.

11. Misunderstanding the 250% Working Disabled Program. Disabled adults working part-time can use the 250% WDP at premiums of $20-$250/month (sliding scale) with asset limits of $130,000 / $195,000, a sometimes-overlooked alternative to A&D FPL or Medically Needy.

12. Confusing California asset rules with VA Pension net-worth rules. VA Pension (including Aid & Attendance) has a separate net-worth limit under 38 C.F.R. §3.274 with a 3-year asset look-back. Check the current VA Pension Maximum Annual Pension Rate (MAPR) tables before assuming a number. The two rule sets are completely independent.

The Bottom Line

1. California's asset limits are now the most generous in America. $130,000 individual / $195,000 couple under AB 116, about 65 times higher than the federal floor. Combined with the federal CSRA, married couples can preserve approximately $292,660 plus the home plus retirement accounts in distribution mode.

2. Transfers made during the 2024-2025 no-asset-test window are permanently shielded from penalty. Assets currently in your name, however, are subject to the $130K/$195K limit regardless of when you acquired them.

3. Four categories are entirely exempt from the asset reinstatement. SSI-linked, Pickle, Disabled Adult Children, and Disabled Widow(er)s recipients continue without an asset test.

4. The HCBS carve-out is the most powerful elder-law planning lever in California. Transfers don't trigger penalties for HCBS waivers, IHSS, CBAS, or PACE applications, only for nursing-facility Medi-Cal. This advantage does not exist in any other state we've reviewed.

5. California is NOT a Miller Trust state. Skip the QIT, use A&D FPL or Medically Needy / Share-of-Cost instead.

6. Engage a California elder-law attorney for transfer planning. The interaction between the AB 116 reinstatement, the phased look-back ramp, the HCBS carve-out, the spousal impoverishment rule, and the Pickle/DAC/DWW exemptions is complex enough that DIY planning often misses opportunities.

Reference Numbers

Learn More

• Medi-Cal Eligibility & Income Limits
• How to Apply for Medi-Cal
• California Medi-Cal Long-Term Care
• California HCBS Waivers
• California IHSS Guide
• California Medi-Cal Personal Needs Allowance
• California Medi-Cal Overview

Find personalized help navigating Medi-Cal asset limits at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.