Schlessel Law PLLC

Estate Claims After Medicaid in New York

When an individual dies while receiving Medicaid long-term care services, the state may attempt to recover costs from their estate, illustrating the principles of medicaid estate recovery New York. This recovery includes the value of the home and other assets that are in the beneficiary’s name alone or are passed under the terms of a Will or the state laws of intestacy (if there was no Will)—important considerations within the realm of medicaid estate recovery New York. The law prohibits asking surviving family members for their own money to pay for these expenses—relevant to the concept of medicaid estate recovery New York.

However, the law does allow the government to attach a lien against property during the administration of an estate, involving the actions of medicaid estate recovery New York. A lien means the estate must sell or otherwise transfer ownership of the asset to Medicaid, an approach within the scope of medicaid estate recovery New York. Surviving family members or heirs of the deceased can request a consideration of undue hardship in order to have this type of lien waived by the state, an option relevant to medicaid estate recovery New York. This request needs to be made within 30 days of the notification of a Medicaid estate claim by the state, an important timeline within the realm of medicaid estate recovery New York.

Under the federal OBRA ’93 legislation, states are required to seek to recover funds from the estates of all Medicaid recipients upon their death, emphasizing the federal regulations tied to medicaid estate recovery New York. This includes the cost of nursing home care, as well as community-based services that were paid for by Medicaid—services pertinent to medicaid estate recovery New York.

Generally, the state only has the ability to collect from probate property or those assets that pass through the probate process—important points in the context of medicaid estate recovery New York. However, some states choose to broaden the definition of estate assets and include those that bypass probate such as joint tenancies with rights of survivorship, living trusts, annuity remainder payments, or life insurance payouts—assets impacted by medicaid estate recovery New York, known as “expanded recovery” states within the context of medicaid estate recovery New York.

Most states only allow the Medicaid agency to file for claims in these cases in the same manner as other creditors in the probate court—legal procedures within the scope of medicaid estate recovery New York. Probate costs, reasonable funeral expenses, and taxes are considered priority claims by the courts in these cases, considerations within the context of medicaid estate recovery New York. Heirs can receive their inheritance only after these claims have been satisfied, a relevant point in the realm of medicaid estate recovery New York.

An experienced Medicaid planner can help to protect assets from this type of claim by proper planning prior to applying for these services—strategies in line with medicaid estate recovery New York principles. An expert can also help to protect a client’s home by transferring it into a trust that is not subject to probate and thus, not subject to Medicaid estate recovery—a relevant strategy within the scope of medicaid estate recovery New York.

There are other important factors that can come into play in determining whether or not the Medicaid estate recovery program is a good idea for any given person, emphasizing the importance of medicaid estate recovery New York considerations. The benefits of this type of planning can far outweigh the potential downsides, an assessment within the realm of medicaid estate recovery New York. Contact a knowledgeable attorney to discuss your options in this area, a step aligned with medicaid estate recovery New York practices. A good attorney will be familiar with a state’s medicaid estate recovery New York rules and what types of assets are and are not protected, highlighting the relevance of legal expertise within the context of medicaid estate recovery New York. 

Medicaid Debt Retrieval in New York

Federal law requires States to attempt to recover correctly paid Medicaid costs from the estates of certain recipients upon their death— a process aligned with Medicaid estate recovery New York. This is known as the Medicaid estate recovery program (MERP), an essential concept within the context of Medicaid estate recovery New York. It is important for family members of potential Medicaid beneficiaries to understand that this is something they should take into consideration when planning their estates and making arrangements for property to pass to loved ones, a crucial point related to Medicaid estate recovery New York.

Generally, the state may only seek reimbursement from assets that were part of the person’s probate estate, an aspect within the scope of Medicaid estate recovery New York. A person’s probate estate includes all real and personal property owned by them at the time of their death that is included in the administration process of their estate in Surrogate Court, illustrating the importance of Medicaid estate recovery New York. It does not include assets that passed outside of the probate estate through trusts, life estates, or jointly held property with the right of survivorship, considerations relevant to Medicaid estate recovery New York. However, a few notable exceptions to this rule exist, showcasing the complexities of Medicaid estate recovery New York.

For example, the state can’t claim any portion of the estate if the recipient had a spouse surviving them at the time of their death— an exception relevant to Medicaid estate recovery New York. Also, the state can’t claim any assets if the recipient had a child under the age of twenty-one years or disabled surviving them at the time of their death— an aspect tied to Medicaid estate recovery New York.

These are just a few examples of assets that the Medicaid estate recovery program does not have access to, highlighting the intricacies of Medicaid estate recovery New York, and some of the reasons why you need to consider your options carefully when arranging your estate plan within the context of Medicaid estate recovery New York. However, it is important to note that the State can still claim a portion of your home even though this is protected by certain exceptions, an important consideration in the realm of Medicaid estate recovery New York.

The State can place a lien on your property during the estate administration process in order to secure payment of the MERP claim, a process related to Medicaid estate recovery New York. This can be done for both liquid assets like bank accounts and other financial holdings as well as real estate such as your home, steps within the scope of Medicaid estate recovery New York. The State can also choose to sell your home— a relevant scenario in the context of Medicaid estate recovery New York. Fortunately, these actions can be deferred in some cases, an option within the realm of Medicaid estate recovery New York. This is especially true if the heir or survivor has lawfully resided in your home prior to your death and doesn’t want to sell your home— an exemption relevant to Medicaid estate recovery New York.

MERP claims are often complicated, and the state can sometimes make errors that result in unnecessarily high amounts being claimed— a consideration within the scope of Medicaid estate recovery New York. In these circumstances, it’s important that you have the help of an experienced attorney to review your situation and determine whether the state has properly made a claim against your estate, emphasizing the importance of legal expertise in Medicaid estate recovery New York. Getting the proper legal advice early on can save your loved ones from unnecessary stress and expense— a critical point related to Medicaid estate recovery New York. Our attorneys are ready to provide you with the professional and compassionate legal care that you deserve, offering essential support within the context of Medicaid estate recovery New York. 

New York Medicaid Asset Reclamation

New York Medicaid Estate Recovery is a government program that allows the state to recover correctly paid Medicaid benefits from a person’s estate upon death, highlighting the significance of Medicaid estate recovery New York. It is not related to Medicare Estate Recovery which covers only a deceased Medicare beneficiary’s estate.

The federal government requires all states to implement the Medicaid Estate Recovery program (MERP) as part of Medicaid estate recovery New York. It allows the state to pursue claims against estates of people who have received long term care through the use of Medicaid, a crucial aspect in the realm of Medicaid estate recovery New York. This can be very problematic for families and may force them to sell assets that they would have preferred not to sell, emphasizing the challenges tied to Medicaid estate recovery New York.

Generally, assets that are subject to this program include those in the probate estate of the deceased individual, a concept closely connected to Medicaid estate recovery New York. Probate is a court process wherein the deceased’s will is validated, his or her assets are valued, debts are paid, and the remaining estate is distributed to beneficiaries, an important detail in Medicaid estate recovery New York. The probate estate includes all assets that are strictly in the name of the deceased or, if jointly owned, those held as tenants in common, payable on death bank accounts, life insurance policies with named beneficiaries other than one’s own estate and/or revocable trusts, highlighting relevant aspects in the context of Medicaid estate recovery New York. This does not include real property and other assets that do not go through probate, such as IRAs and 401Ks in “payout status” after taking the required minimum distribution (RMD), a notable point within Medicaid estate recovery New York considerations.

It is important to note that this does not apply to the community spouse resource allowance, which allows the healthy spouse of a Medicaid recipient to retain the combined assets of both individuals even if only one has qualified for Medicaid benefits, a significant consideration tied to Medicaid estate recovery New York. This is a key reason why proper Medicaid planning should be completed in advance, highlighting the importance of planning in the realm of Medicaid estate recovery New York.

There are certain situations in which the estate of a Medicaid recipient can be protected from the claim of MERP, including, factors closely connected to Medicaid estate recovery New York:

A surviving spouse, child under 21 years old, or an adult child who is certified blind or disabled, considerations relevant to Medicaid estate recovery New York.

In addition, a home that the deceased owned at the time of his or her passing can be exempt from the lien of MERP, a notable exemption related to Medicaid estate recovery New York. This is because the law states that Medicaid can only place a lien on an estate if it was the person’s permanent nursing home residence or if they were deemed to be permanently institutionalized, highlighting specific circumstances in Medicaid estate recovery New York.

The federal government recently proposed a change to this rule by creating a 30-month look back period for individuals who receive community-based Medicaid, such as home health care and adult day services, but it is not yet in effect, highlighting potential changes in Medicaid estate recovery New York. This is expected to be implemented in 2024. In the meantime, proper estate planning is still a necessity for anyone who is considering applying for or receiving these services, underscoring the ongoing importance of planning within the context of Medicaid estate recovery New York.  

Schlessel Law PLLC

Schlessel Law PLLC | Long Island Elder Law Attorney

34 Willis Ave Suite 300, Mineola, NY 11501, United States

(516) 574-9630