My daughter died this year while covered by Medicaid. At the time she was approved for Medicaid she owned a house that was her principal residence worth about $100K. She then got so sick she needed to move to a different primary residence. After her death we are selling the house -- with the proceeds going to a trust set up for her kids. Is there any chance that Medicaid will try to seize those funds? Note that she was 42 at time of death and was in NH. Does asset recapture only apply to over 55?
I don't know if there's a lien on the house, we're checking. It may not be registered,
I note that several answers state when Medicaid is REQUIRED ti seek repayment. Does that mean they can also do so in cases where it is not required? Any guesses as to the likelihood that they will try?
The other thing to note is whether your state is a recovery from probate only state. Only assets that go through probate can be recovered from.
Using my previous California example. It's a probate recovery only state. So even if someone has been in a nursing home for 100 years and are well over 55 years old, if their assets don't go through probate then the state can't attempt recovery from those assets.
That's why a trust works to shield assets from MERP. But a trust is not the only way to avoid probate on a house. A TOD works as well. Simply being too low in value can also avoid recovery depending on prices in your area.
So, is the house going through probate? Does the state it's in only recover from assets going through probate?
Your opinion would have been just as effective without those critical words
"YOU ARE WRONG AS USUAL".
Those are the words used to cause fights. imo.
"For individuals age 55 or older, states are required to seek recovery
of payments from the individual's estate for nursing facility services,
home and community-based services, and related hospital and prescription drug services."
https://www.medicaid.gov/medicaid/eligibility/estate-recover/index.html
Of course, that's the Federal mandate. Your state may feel otherwise. Please check the policies in your state. In my state, they say in certain terms that Medicaid Recovery only happens if you get those long term services while 55 or older.
Straight from the horse's mouth.
"For individuals age 55 or older, states are required to seek recovery of payments from the individual's estate for nursing facility services, home and community-based services, and related hospital and prescription drug services."
https://www.medicaid.gov/medicaid/eligibility/estate-recovery/index.html