Are we allowed to keep this money or must it be paid to Maryland Medicaid Recovery?

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My mother only had Social Security which was paid to the Nursing home each month. She got $74 which was put in an account for her use. After she passed I received the money from her account. That money was accounted for on the Schedule B with Maryland Register of Wills. Her life insurance was turned over to funeral home prior to her getting Medicaid. The policy paid her funeral and remainder was paid to me to disperse to beneficiaries (myself and 4 siblings). This was not included on Schedule B.

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The schedule B... Is that like an "assets of the estate" document for probate? So $74 a mo build up in her personal needs allowance fund AND whatever $ left from FH costs all got entered on the B? So what $ amount is the total? Under 3k? Or Under 10k?

I'm assuming you got a NOI (notice of intent) from MD Medicaid and within NOI is amount Medicaid paid. Medicaid is required to attempt a recovery via MERP.

BUT there are specific requirements as to cost-effectiveness. Like
- if Estate is under 3k or
- "recoverable estate" is under 10k,
Then recovery is viewed as not cost-effective. This info should be in your states Medicaid program on-line information or your states administrative rules.

Although they sound the same, these are 2 different things. Like say, dad died and his life insurance paid 12k but funeral home cost $9500 that $ 2500 would be under the 3k cost effective bar for recovery. You'd let MERP know and with some sort of $ documentation. If you paid florals, add that in. Most funeral pre-need don't cover floral or notices in paper.... It adds up. Just do a document to clearly show under 3k.

Now "recoverable estate", this usually is for estates that opened probate. Like elder died still having a home. So home - with value - is an asset of the estate. In probate an "assets of the estate" document is done & filed & signed off within probate. But there will be all sorts of costs associated both for probate and maintaining the estate. Like atty fees, court filing fees, taxes & insurance on property. Plus any other claims against the estate. Like a mortgage or debts. These all eventually are done as a "claims against the estate" document. So there would be an Assets document & a Claims Against document. Most states have certain costs as priority claims. Usually fees to open & maintain probate, burial and property costs and any secured debts are priority claims & filed by executor or others who paid. Medicaid is unsecured debt btw. If those costs show that the "recoverable estate" is less than 10k, recovery is not cost-effective. Sometimes for older & modest value property, recoverable estate value is quite low.

So are you either under 3k or 10k in probate?



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