MERP / MERS / Estate Recovery is required by the feds to be attempted to be done in someway in order for states to get their federal share of funding. MERP exists whether you open probate or not. State will send a NOI (notice of intent) to whomever on file for Medicaid contact. Probate provides for a established system of dealing with estates.
What the state spends on care through Medicaid for anyone over 55 by & large is subject to a recovery. Can be NH care or community based Medicaid. Folks can be on Medicaid but die with assets.... like a home, a life insurance policy that has the estate as beneficiary, or has $ in their bank account, personal needs account at the NH or in the black on their Miller Trust or an annuity. All become assets of the deceased Estate. Some assets can pass outside of an estate, like an Enhanced benefit Deed. Some assets, like a house in a LE, now are subject to recovery in some states.
A house titled and transferred into a Trust way before Medicaid is ever applied for would not be an asset of the estate. The trust better have its own solid source of income though; otherwise it will defund.
Just what & how MERP runs & how best for families/ heirs to deal with it, depends on your states laws regarding property rights, probate, and administrative code and whether heirs have exemptions, exclusions to a Recovery. Some states allow for exempt assets - like a home - to have a lien placed on it upon starting Medicaid. Other states do this as an after death process.
A will actually has nothing to do with meds. Are you maybe talking about a living will? That has to do with medical care and meds towards the end of life and would not involve probate.
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What the state spends on care through Medicaid for anyone over 55 by & large is subject to a recovery. Can be NH care or community based Medicaid. Folks can be on Medicaid but die with assets.... like a home, a life insurance policy that has the estate as beneficiary, or has $ in their bank account, personal needs account at the NH or in the black on their Miller Trust or an annuity. All become assets of the deceased Estate. Some assets can pass outside of an estate, like an Enhanced benefit Deed. Some assets, like a house in a LE, now are subject to recovery in some states.
A house titled and transferred into a Trust way before Medicaid is ever applied for would not be an asset of the estate. The trust better have its own solid source of income though; otherwise it will defund.
Just what & how MERP runs & how best for families/ heirs to deal with it, depends on your states laws regarding property rights, probate, and administrative code and whether heirs have exemptions, exclusions to a Recovery. Some states allow for exempt assets - like a home - to have a lien placed on it upon starting Medicaid. Other states do this as an after death process.
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