The state will recovery the repayment from the following assets:
1, Joint tenancy property and tenant in common - value of the member’s interest for jointly owned property is the percentage interest attributed to the member when Medicaid eligibility was determined or, if not determined at eligibility, the fractional interest the member had in the property at his or her death.
2. Life Estate - the value is the percentage of ownership based on the member’s age at the date of death, according to the life estate tables used for Medicaid eligibility.
3. Life Insurance Policy – any amount up to the value of the money paid for medical cost.
4. Marital Property - 50% is allocated for marital property value
5. Revocable Trust - any amount up to the value of the money paid for medical cost.
6. Tax Equity and Fiscal Responsibility Act Liens – The state may still file a lien on the property even if the member is survived by: spouse, child, if the child is any of the following: under age 21, or blind, or disabled. However, the state will not inforce the lien while the above survivors are alive.
7. Other Non-Probate Property (transfer on death deeds, payable on death accounts, transfer on death accounts, and beneficiary designation) – any amount up to the value of the money paid for medical cost.
8. Probate Estates - The probate court will not allow a claim on the estate to be paid if any of the following survives the member: spouse, child, if the child is any of the following: under age 21, or blind, or disabled.
9. Homestead property even ones that are being sold on a land contract - any amount up to the value of the money paid for medical cost.
The amount recovered by the state will depend on when the assets was obtain, how the assets is titled, and the amount the assets is worth when the member passes away. The state may recover the total amount that was paid for the medical needs from any of the above items.
The state may not put liens on property located outside of the state, but they will try to negotiate a lien on that property.
The state will recover any funds that remain from a burial trust after costs have been paid. This include all irrevocable funeral trust (insurance policy) which has been created for the member.
Heirs, guardians, and trustees of revocable trusts created by a deceased Medicaid member must notify estate recovery program before transferring any of the deceased’s property through a Transfer by Affidavit ($50,000 and under). The heir, guardian, or trustee must send a copy of the affidavit to the state by certified mail, return receipt requested. Examples of property include bank accounts (savings or checking); postal savings; credit union or building and loan shares; contents of safe deposit boxes; savings bonds; stocks and other securities; promissory notes and mortgages which are payable to the applicant/member and negotiable; real estate; funeral trust, etc.
Estate recovery is different for people who are survived by a spouse, child, if the child is any of the following: under age 21, or blind, or disabled, and Native Americans. Always seek legal advice before transferring any assets from a deceased person who received government benefits for medical assistance.