Is Money Owed on a Loan an Asset for Medi-Cal Purposes?

Q Does Medi-Cal consider a promissory note an asset? For example, if I sell my house and I carry the contract, does the mortgage I hold constitute an asset for Medi-Cal planning purposes? If so, is the asset value based on the amount still owed on the contract or on the selling price of the house? If it's considered an asset, does that mean that the buyers would have to refinance in order to pay off their loan to me? Would it matter if this occurs within or before the five-year look-back period?
A

The short answer is that the mortgage is an asset and its value is the amount left to be paid on it, not the original amount of the loan. And if the transaction is for fair market value and a fair interest rate, there should be no transfer-of-asset issue if it is taken out within the five years before applying for Medi-Cal.

However, the reality could be more complicated, and potentially better. You might be able to argue that the mortgage should not be counted as an asset because there is no market for it. You can argue that it should be counted as an income stream with the monthly payments going to the facility. Of course, in that case it may still be in your estate at your death and subject to a reimbursement claim by the state Medi-Cal agency.