OBBBA Cons: The Hidden Risks Families Should Watch For

While OBBBA offers attractive tax breaks for many, not everyone comes out ahead. Some provisions introduce new risks—especially for seniors, Medi-Cal recipients, and families with complex assets.

Key Hidden Risks:

• Medi-Cal Funding Cuts and Asset Rules
  OBBBA slashes federal Medicaid funding, leading California to reassert asset limitations ($2,000–$130,000 in countable assets). This could impact seniors with brokerage accounts, IRAs, annuities, or multiple properties—potentially disqualifying them from benefits
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• Work Requirements for Medicaid Recipients Under 65
  Those receiving benefits under age 65 may face new work requirements, adding administrative complexity for families providing care.
  
• Planning Pressure for Seniors and Disabled Individuals
  What’s “beautiful” for wealthy families can be “ugly” for seniors who rely on Medi-Cal. Failure to adapt estate plans could leave families vulnerable to benefit loss, liens, or unplanned spend-downs.
  

Why This Matters:

Families must review Medi-Cal eligibility strategies, reconsider asset titling, and explore trust planning to preserve benefits while complying with the new rules.

Call our office at (949) 333-3702 to schedule a Trust Review Meeting to ensure your family’s plan protects your loved ones under OBBBA’s new rules.