Can Medicaid stop actions to take real property as payment?

No, Medicaid agrees not to displace a disabled child living in the home. But a disabled child who lives elsewhere does not qualify for an exemption.

Vicki, I am moving your post back to the top to see if there is anyone familiar with this that can answer.

In reply to pamstegma, ..the reason I asked the question in the first place is because my husband lost his mother a few years ago. when the bill came , it had a few reasons not to go after her property one was if there was a living disabled child, law also states of any age, and is not clear about where that child is living. anyway he answered yes. The next letter we got was that they were no longer going to be go after the property on the basis of his disability. I have more to lose so I want a clear answer. So does it come down to the caseworker to decide on what they want to do on their own? Which could be a real shame if had someone that was out to get all they could get from one person to cover what they couldn't recover from the last person.

Pam was right. It is when the house is the home of a minor child or a disabled adult child that it is exempt from immediate Medicaid recovery. I have a feeling that there was a wrong box checked somewhere. (This is corrected. See below.)

Correction -- I just checked on what I wrote. Apparently the house is exempt from recovery if there is a spouse or a disabled child. I didn't see anything that said they had to live in the home. This is good news. I would make double sure, though, before I did anything with the house.

Vicki, then your best bet will be to privately consult an attorney familiar with Medicaid law, MERP recovery, and disability in the state of NC. Pamsteg gave you a reply based on her knowledge, but you had an experience that was different and added additional information not in your original post. An attorney will be able to give a definitive answer to your question when they gather all your facts and paperwork. Sounds like you have a particular set of circumstances not easily answered without research and more data than should be shared on a public website.

My understanding is that full exemption is provided to the disabled heir as per a valid will, assuming the merp paperwork is done.They do not have to live in the house or even live in the state. If more than 1 heir, each have to deal with recovery based on thier share & the value of the estate.

I'd send a certified letter to the state to ask for a release of any MERP claim or lien. Make a copy of the letter orginal received and attach it to the new certified letter.  There likely is a specific state form for the release with a seal. Then file it at the courthouse (probably chancery court side of the courthouse) so you have it added to the chain of documents on the property - take cash for filing, go early & they will mail it back to you once recorded IF they cant do all on the spot.Then get name changed (at tax assessor side of courthouse if chancery court doesn't downstream it). So no issues of clouded title when you eventually sell or transfer ownership. If you get the "release of claim",you can probably DIY the courthouse runs.

You just want to do all the follow through so tax collector bill comes to you and all change in ownership reads correctly.