Can Medi-Cal Take Your Family Home After You Die?
What California families need to know about estate recovery in 2025
One of the most common questions families ask is:
“Will the State of California come after my house when I die if I used Medi-Cal?”
The good news: California changed the law in 2017, and Medi-Cal’s ability to recover assets after death is now much more limited than it used to be. But many people (and even some professionals) don't fully understand how this works — or how to protect assets correctly.
This article breaks it down in plain English.
What Changed: Post-2017 Medi-Cal Recovery Is Limited to Probate Assets Only
Before 2017, Medi-Cal could seek recovery from any assets in which a deceased recipient had an interest at death — including assets in:
Living trusts
Joint tenancy
Community property
Pay-on-death accounts
It often resulted in the state forcing the sale of family homes.
After January 1, 2017, under SB 833, the recovery rules changed. Medi-Cal can now only recover from assets subject to probate — meaning assets held in your name alone, or controlled by a will.
Assets that avoid probate (and therefore avoid recovery) include:
Asset Title: Revocable Living Trust Protected from Recovery? ✅ Yes
Asset Title: Joint Tenancy Property Protected from Recovery? ✅ Yes
Asset Title: Assets with Beneficiary Designation Protected from Recovery? ✅ Yes
Asset Title: TOD / POD Accounts Protected from Recovery? ✅ Yes
Asset Title: Life Insurance with Named Beneficiary Protected from Recovery? ✅ Yes
Asset Title: Assets in Probate (no trust / no beneficiary) Protected from Recovery? ❌ No, subject to recovery
If your home is still titled in your name alone when you die, it WILL be subject to Medi-Cal recovery.
That’s why proper estate planning — including trust funding — matters more than ever.
What Medi-Cal Still Can Recover (as of 2025)
Medi-Cal can only recover when BOTH are true:
The recipient was over 55 when receiving services or
Received long-term care in a skilled nursing facility
AND the asset passes through probate
If your estate avoids probate, recovery does not apply.
Do I Have to Sell My House to Pay Back Medi-Cal?
Not if the home is titled properly.
Many Californians assume that creating a living trust “protects” the house — but forget to transfer the house into the trust. If the home is still in your individual name at death, it becomes a probate asset — and is fair game for estate recovery.
A trust only works if the house is deeded into it.
We cannot protect what was never transferred.
This is one of the most common and costly mistakes we see.
How to Avoid Medi-Cal Estate Recovery in California
Here are the most effective ways to protect assets:
Good Strategy: Revocable Living Trust How It Works: Must transfer the asset into the trust
Good Strategy: Joint Tenancy Ownership How It Works: Surviving joint tenant takes full title
Good Strategy: Transfer on Death (TOD) Deed How It Works: Must follow strict statutory rules
Good Strategy: Naming Beneficiaries on Accounts How It Works: Applies to bank/retirement/investment
Bad Strategy: Leaving Property in Probate How It Works: Subject to Medi-Cal Recovery
Why Proper Planning is Critical — Especially in 2025
Medi-Cal is still one of the most powerful long-term care benefit programs in California, but the rules are strict, and estate recovery still applies to families who don’t plan correctly.
The law is on your side — but only if you set up the right legal tools before you need them.
Ready to Protect Your Family Home?
At Nett & Nett, PC, we help California families:
Create revocable living trusts that avoid probate
Transfer homes and assets into trust properly
Protect estates from Medi-Cal recovery
Plan for long-term care and incapacity with dignity