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Once we've emptied FIL and MIL's house out ( foreclosure pending) do we need to report the earnings from a garage sale to Medi-Cal? What about the collectibles we plan to sell on eBay? We want to open an account to help with future funeral costs as they have no pre plan.

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I'm not sure about this, but want to bump it back to the top. I believe that personal items are exempt from Medicaid recovery, but not sure enough to say it with any confidence. Does anyone here know for sure? I hope you can apply the money toward funeral expenses. It would be a good way to spend it down.
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Not likely to be considered "earnings" if you are just changing the type of asset from exempt household stuff to cash. (Different than buying and selling stuff for profit as a business.) When you have cash you would want to put it into a special type of bank account, either revocable or irrevocable burial trust. Ask your bank about that. Find out from the state what the max is you can have gor burial plan. It's probably only about $1500.
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