Categories assigned to this post:

⭒ CANHR Advocate Dear Advocate Articles

Can Medi-Cal make a recovery claim against a home that is transferred via a Transfer on Death Deed (“TOD Deed”)?

Dear Advocate:

My mother is on Medi-Cal, and wants me to inherit her home after she dies without going through the time and expense of probate or trust administration. She is considering using a TOD Deed, but is concerned that Medi-Cal will make a claim against her home after she dies. Can Medi-Cal make a recovery claim against a home that is transferred via a Transfer on Death Deed (“TOD Deed”)?

Son in Sunnyvale

Dear Son:

Like most simple and inexpensive legal strategies, there are advantages and disadvantages to the TOD Deed. For more information, see CANHR’s Fact Sheet: Transferring Your Home with a Transfer on Death Deed (TOD) – What You Need to Know. However, if your mother does decide to transfer her home to you via a TOD Deed, she does not need to be concerned about a Medi-Cal recovery claim. For individuals who die on or after January 1, 2017, recovery is limited to only those assets subject to California probate. Since your mother’s home will pass to you via the TOD Deed, it will not be subject to probate, nor a Medi-Cal recovery claim.