California Long-Term Care Planning

Last updated: August 21, 2026 Jurisdiction: California

Start from the rules that are actually in force

California planning in 2026 starts with a reinstated asset test: $130,000 for one person and $195,000 for a couple, effective January 1, 2026. That follows the temporary 2024–2025 elimination and changes the analysis for anyone acting on older “no asset test” materials (DHCS ACWDL 26-02; DHCS ACWDL 25-18).

DHCS has signaled a further reduction to the asset limit, though its own published materials are not fully consistent on the amount or effective date — consult DHCS's current guidance before relying on a specific figure. The consumer FAQ specifies $21,000/$31,000 from July 1, 2027, while the trailer-bill fact sheet says SSI alignment no sooner than January 2027, contingent on programming (DHCS Asset Limit FAQ; DHCS asset-limit trailer-bill fact sheet).

Transfers require a calendar, not a slogan

Transfers in January 2024 through December 2025 are permanently outside DHCS's LTC transfer review. After that, the review builds toward a full 30 months only on July 1, 2028; DHCS ties the penalty to nursing-facility level of care and lists transfers to a spouse, to a blind or disabled child, and full-value sales as examples that do not trigger a penalty (DHCS ACWDL 25-18; DHCS Asset Limit FAQ).

California's present window is unusual, but not advice to transfer assets. Eligibility, tax basis, creditor rights, VA benefits, and estate recovery can point in different directions. Obtain California elder-law and tax advice before acting.

Trust and home strategies have limits

CANHR says a revocable living trust does not automatically shelter its assets for Medi-Cal eligibility; each asset must independently qualify for an exclusion (CANHR, 2026 Asset Limit Reinstatement FAQ).

CANHR's stated position is that a trust becoming irrevocable only at death remains subject to recovery because the trustor retained power during life. That is CANHR's position, not a settled statutory conclusion in this page; the SB 833 probate-only limitation makes attorney review especially important (CANHR trust-and-recovery Q&A; DHCS Estate Recovery Program).

Income and spouse protections can be more important than a trust

California does not use a Florida-style institutional income cap or Miller Trust; share of cost and spousal allowances can be decisive. DHCS's 2026 letter gives a $4,067 MMMNA and $162,660 CSRA, subject to its stated treatment of newly determined and existing cases (DHCS ACWDL 26-02). Compare Florida's Qualified Income Trust planning framework.

California's published exempt-property rules describe the principal residence as totally excluded with no equity cap stated; do not rest an individual plan on an unqualified assertion that California has no home-equity limit (DHCS MC 007).

Not mutually exclusive. Most families combine two or three funding pillars — this one rarely stands alone. The Journey Assessment ranks all ten pillars against your specific situation and recommends the top three.

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