This page provides a plain-English summary of key elder care and estate planning information specific to California residents. It covers California Medi-Cal limits, estate tax rules, advance directive information, and links to important California agencies and resources.
Information on this page is updated periodically but laws and limits change frequently. Always verify current figures with the relevant agency or a licensed attorney.
California Medi-Cal — 2026 Eligibility Limits for Long Term Care
Medi-Cal is California’s Medicaid program and the primary payer for nursing home care for eligible low income California residents. California made significant changes to Medi-Cal asset rules in 2026 that all families should be aware of.
Important 2026 change — asset limits reinstated California eliminated its Medi-Cal asset test in 2024 allowing people to qualify regardless of assets. Effective January 1 2026 California reinstated asset limits returning to pre-2024 levels. Families who qualified under the no-asset-test rules should be aware that they will be reassessed at their next annual renewal.
Asset limit — single applicant As of January 1 2026 a single applicant must have $130,000 or less in countable assets. Countable assets include bank accounts, investments, stocks, bonds, and other assets that can be converted to cash. Exempt assets — assets that do not count toward the limit — include the primary residence, one vehicle, and personal belongings.
Asset limit — married couples For married couples the combined asset limit is $195,000. When only one spouse applies for nursing home Medi-Cal the community spouse — the spouse who remains at home — may retain up to $162,660 in countable assets under the Community Spouse Resource Allowance.
Income limit California does not have a hard income limit for nursing home Medi-Cal. However applicants must contribute nearly all of their monthly income toward the cost of care. A small personal needs allowance is retained by the resident.
Look-back period California implemented a 30-month look-back period for asset transfers made on or after January 1 2026. Transfers made between January 1 2024 and December 31 2025 are not subject to transfer penalties. Transfers made on or after January 1 2026 for the purpose of qualifying for nursing home Medi-Cal are subject to penalties if they exceed the Average Private Pay Rate.
Estate recovery California requires Medi-Cal estate recovery — the state seeks reimbursement from the estates of deceased Medi-Cal recipients for the cost of long term care benefits paid. Estate recovery applies to assets that pass through probate. Assets held in a properly structured irrevocable trust that bypasses probate may be protected from estate recovery in some circumstances.
How to apply for California Medi-Cal Applications can be submitted online at coveredca.com, by phone at 1-800-300-1506, or in person at your county social services office.
California Medi-Cal administering agency California Department of Health Care Services — dhcs.ca.gov
California Estate Tax — 2026
No California state estate tax California does not impose a state estate tax or a state inheritance tax. This is a significant advantage for California residents compared to states like Illinois, Massachusetts, and New York which impose their own estate taxes.
Note on proposed legislation As of early 2026 California legislators have discussed a proposed state estate tax that could apply to estates above approximately $5 million. This legislation had not been enacted as of March 2026. Californians with significant estates should monitor this issue and consult with an estate planning attorney.
Federal estate tax California residents may still be subject to the federal estate tax. The federal estate tax exemption is $15,000,000 per person in 2026 following enactment of the One Big Beautiful Bill Act. The exemption is portable between spouses meaning a married couple can protect up to $30,000,000 from federal estate tax with proper planning. The top federal estate tax rate is 40 percent on amounts above the exemption.
No California gift tax California does not impose a state gift tax. Federal gift tax rules apply — the annual gift tax exclusion is $19,000 per recipient in 2026.
Community property California is a community property state. Assets acquired during marriage are generally considered equally owned by both spouses. Community property receives a full step-up in tax basis when the first spouse dies which can significantly reduce capital gains taxes when assets are later sold. Married California residents should ensure their estate plans account for community property rules.
Proposition 19 — property tax reassessment California’s Proposition 19 significantly limits the property tax reassessment exclusion for transfers from parents to children. Under Proposition 19 a child who inherits a parent’s home can avoid reassessment only if they use the home as their primary residence and only up to a limited assessed value benefit. Families with significant real estate holdings should discuss Proposition 19 with an estate planning attorney.
California Advance Directives
California law recognizes the following advance directive documents:
California Advance Health Care Directive California’s standard advance directive form combines the healthcare power of attorney and living will into a single document. It allows you to name a healthcare agent and document your wishes regarding specific medical treatments. The document must be signed and witnessed by two adults or notarized.
California POLST — Physician Orders for Life-Sustaining Treatment A medical order form for people with serious illness or frailty that documents wishes regarding CPR, hospitalization, and artificial nutrition. Must be signed by a physician, nurse practitioner, or physician assistant. California maintains a POLST registry.
Free California advance directive forms Free California-specific advance directive forms are available at caringinfo.org — the website of the National Hospice and Palliative Care Organization — and at the California Attorney General’s website at oag.ca.gov.
California Advance Directive Registry California does not currently maintain a statewide advance directive registry. The California POLST registry is available for POLST forms. Copies of your advance directive should be given to your healthcare agent, physician, and any hospital or care facility where you receive care.
California Key Agencies and Resources
California Department of Health Care Services — DHCS Administers Medi-Cal including long term care Medi-Cal. Website: dhcs.ca.gov Phone: 1-800-300-1506
California Department of Aging Coordinates programs and services for older California residents including funding for Area Agencies on Aging, adult day programs, and caregiver support. Website: aging.ca.gov Phone: 1-800-510-2020
California Area Agencies on Aging California is served by 33 Area Agencies on Aging that coordinate local services for older adults and caregivers including home care, nutrition programs, transportation, and caregiver support. Eldercare Locator: 1-800-677-1116 or eldercare.acl.gov
California Long Term Care Ombudsman Program Advocates for the rights of residents of nursing homes, assisted living facilities, and other long term care settings. Investigates complaints and helps resolve problems free of charge. Website: canhr.org and aging.ca.gov Phone: 1-800-231-4024
California Advocates for Nursing Home Reform — CANHR A nonprofit organization that advocates for quality care and the rights of nursing home residents. Provides free information and resources to residents and families. Website: canhr.org Phone: 1-800-474-1116
Health Consumer Alliance Provides free legal advice and counseling on Medi-Cal eligibility and benefits including the 2026 asset limit changes. Phone: 1-888-804-3536
California Department of Social Services Administers a range of social services programs for older adults and people with disabilities including In-Home Supportive Services — IHSS. Website: cdss.ca.gov Phone: 1-916-651-8848
In-Home Supportive Services — IHSS
California’s In-Home Supportive Services program — IHSS — is one of the largest and most comprehensive home care programs in the United States. IHSS provides personal care and domestic services to eligible low income older adults and people with disabilities who need assistance to remain safely at home.
Services covered by IHSS include personal care such as bathing dressing and grooming, domestic services such as meal preparation and housekeeping, paramedical services, and protective supervision for people with cognitive impairments.
To apply for IHSS contact your county social services agency. Eligibility is based on functional need and financial eligibility for Medi-Cal.
California Department of Social Services — IHSS information: cdss.ca.gov/inforesources/IHSS
California Veterans Resources
California Department of Veterans Affairs — CalVet Provides services and benefits to California veterans and their families including assistance with VA claims, veterans homes, and California-specific veterans benefits. Website: calvet.ca.gov Phone: 1-800-952-5626
California State Veterans Homes California operates veterans homes that provide long term care to eligible veterans and their spouses. Facilities are located in Barstow, Chula Vista, Fresno, Lancaster, Redding, Ventura, and West Los Angeles. Website: calvet.ca.gov/VetHomes
California Veterans Service Offices Each California county has a Veterans Service Office that provides free assistance with VA benefit claims and California veterans benefits. Find your county office at calvet.ca.gov.
California Senior Property Tax Benefits
Homeowners Exemption California homeowners who occupy their home as a primary residence on January 1 of each year may claim a $7,000 reduction in the assessed value of the home for property tax purposes. Apply through your county assessor’s office.
Senior Citizen Property Tax Postponement Program California offers a property tax postponement program for seniors aged 62 and older and people with disabilities who meet income requirements. The program allows qualifying homeowners to defer payment of property taxes with a low interest rate until the home is sold or transferred. Contact: California State Controller’s Office — sco.ca.gov Phone: 1-800-952-5661
Finding Elder Law and Estate Planning Attorneys in California
The following resources can help you find a qualified elder law or estate planning attorney in California:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory of elder law attorneys by location
- State Bar of California Lawyer Referral Service — calbar.ca.gov — 1-866-442-2529
- California Advocates for Nursing Home Reform — CANHR — canhr.org — provides referrals to elder law attorneys throughout California
The information on this page is for general informational purposes only and does not constitute legal or financial advice. Medi-Cal eligibility limits, estate tax rules, and other figures change frequently and California Medi-Cal rules changed significantly in 2026. Always verify current information with the relevant agency or a licensed attorney. Laws vary and individual circumstances differ significantly.
Last updated: March 2026