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Medi-Cal Estate Recovery Claim

Dear Len & Rosie,

My friend's husband died two years ago after spending a year in a nursing home. He was a recipient of Medi-Cal. After his death, the state sent out an estate claim form asking about his assets. She was advised by an attorney at that time that, as a widow, her house would automatically pass on to her children. Last month, the director of the funeral home I know said that it wasn't so. He said that the state could step in and her children would have to fight to get their inheritance.

Marge

Caring for a sibling with special needs

Dear Len & Rosie,

I am the trustee of my recently deceased mother's trust, which includes a Special Needs Trust for my disabled sister, Judith. Both before and after our mother's death, my sister has rented a property owned by the trust. As trustee, can I pay off the mortgage on this property and turn it over to my sister while staying in compliance with the terms of the trust?

I am particularly concerned about the following passage in the trust "For the purpose of determining Judith's eligibility for any public benefits, no part of the principal or undistributed income of the trust estate shall be considered available to her".