My mother-in-law passed away in November. Her tax return indicates that she is due a small ($180) state tax refund. Since she was on Medicaid for nursing home care I believe this amount is supposed to go back to the state, but there is no place to indicate that on the tax return. It allows my husband to claim it on her behalf. I am wondering if the state will automatically know and intercept it, or if they will send a letter with a bill later?
She had very little of an estate and probate was not needed. Her funeral trust leftovers were sent to the state automatically. Her nursing home resident account as well.
There was a small bank balance in another state that was jointly owned by a friend of hers. He closed it after her death. I think Medicaid could claim that money but as far as my husband and I know, they have not pursued it.
We have possession of her low-value vehicle which currently is still in her name. Our state has a simple form transferring ownership to an heir for a fee. Do we transfer it? Contact Medicaid about the vehicle? Although it is not expensive we don't have the cash to pay out the value amount. The idea of dealing with selling it on behalf of the state is annoying. I don't suppose Medicaid would come get the actual vehicle instead? Heh. We could always donate it to a charity for $0 I suppose.