Q: Can we move property from revocable to irrevocable trust to protect assets from Medicaid in CA?

A: The short answer is that you don't need to do anything because the house is already protected from clawback.

In California, the house is protected from Medi-Cal recovery by being in a trust. It does not have to be an irrevocable trust, it can be in a revocable trust. This is due to changes in 2017 regarding Medi-Cal estate recovery. SB 833 made it so assets passed through a trust are not considered part of the "estate" for Medi-Cal recovery purposes.

A: You're facing an incredibly important decision, and it's clear you’re trying to do the best thing for your mother and her care. In California, moving assets from a revocable trust into an irrevocable trust can be a valid strategy to protect property from Medi-Cal estate recovery—but it’s not without risks. Once the home is placed in an irrevocable trust, your mother would lose control over that asset, and the timing of the transfer is critical.

California follows federal Medicaid rules, which include a 30-month look-back period for long-term care Medi-Cal eligibility. That means if your mother enters a facility within 30 months of transferring the property, it could be considered a disqualifying transfer, unless it falls under an exemption. This could delay her eligibility for benefits or require a penalty period, depending on the circumstances and value of the home.

Because your mom already has dementia, capacity to approve such a transfer may also come into question, even if you're acting as successor trustees. You’ll need to make sure any action taken aligns with the powers granted in the original trust and complies with California trust law. You’re wise to pause and ask questions before making changes—this is the kind of situation where the timing, documentation, and legal language matter a great deal. You’re doing right by your mom by treading carefully and looking out for her future.