What Is Senate Bill No. 833 & How Will It Help CA Residents?


Recently, California passed Senate Bill No. 833, which will take effect on January 1st. I’ll go over how Senate Bill No. 833 will protect your estate from Medicare fees today.

Many of you may not know this, but if you or a loved one file a claim with Medi-Cal, upon your passing, the California Department of Health can file a claim against your estate to reclaim all of the Medi-Cal fees. 

Many people use Medi-Cal to pay for nursing homes, hospitalization, long-term care, or assisted living. The good news for California residents is that Senate Bill No. 833 will prevent Medi-Cal from filing a claim against your loved one’s estate after they pass away. 

How does this work? Starting on January 1st, 2017, if your loved one has a living trust, Medi-Cal cannot go after your estate. Make sure that you and your family have set up a living trust. If they already have one, make sure that it is set up properly so that you won’t have to worry about Medi-Cal coming after the estate. 

A lot of you have asked me about the best way to hold title. I am not an attorney, but I can give you my advice as a real estate practitioner. If you have a residential property and a conventional loan from a lender or bank, the best way to hold title is a living trust. If you have a commercial property with an LLC, the LLC can have a living trust as well. Doing so will help your family avoid a lot of problems in the future. 

A living trust is the best way for you to hold title.

I also recommend that you set up a durable power of attorney. That way, you can appoint someone to handle your business if you are sick or otherwise unable to do so. You should also set up an alternative health care directive determining who can make a decision on whether to operate or not.

So, make sure you set up a living trust. A lot of people worry about long-term care, but now you can have Medi-Cal pay for it without worrying about your loved one’s heirs selling the estate to pay for your Medi-Cal fees. Regardless of who the president is, Senate Bill No. 833 is great news for California residents. 

If you have any other questions about Senate Bill No. 833 or about setting up a living trust, give me a call or send me an email. I would be happy to help you!


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