OMG I need help, I'm worried about Medicaid claim check on Mom's house. - AgingCare.com

OMG I need help, I'm worried about Medicaid claim check on Mom's house.

Follow
Share

My mom passed away on Jan 19, 2017, she had cancer and was on both Medicare and Medicaid. My mom was never in a nursing home, although left the hospital with hospice but died the next day. I am selling the home and the realtor that is buying it is doing a Medicaid claim check, which it's been 3 days, my dad's has come back clear so I am a little worried. My disabled brother lived in the house with my mom and still stays in the house with me now. So should I be worried?

7

Answers

Show:
You need an RE agent to represent YOU in this transaction. Don't do the sell by owner thing. Buying/selling real estate is not a DIY project unless you're in the business and know what you are doing.
Helpful Answer (1)
Reply to polarbear
Report

So many red flags!! Why the rush?? Realize....
- Medicaid is required to attempt a recovery of costs paid for your mom’s care. It sounds like she was on community based Medicaid rather than LTC in a NH Medicaid. The tally for community based care should be lots less than for a NH but still will exist. It could be a small amounts. All states have MERP being done. The sequence is a NOI (notice of intent) letter sent within 2-4 months of death to whomever on file for contact by Medicaid; basically it requires you to let MERP know what the plan is for the home which is now an asset of her estate. If heirs have exemptions to MERP, you let MERP know. Your disabled brother if heir would likely qualify for exemption to MERP. Once exemption approved, MERP should give him a release of their lien / claim, & he can sell house with no title issues.

What I’d be very concerned about if you sell house on your own before clearing MERP, is that the state will hold heirs responsible for the debt. Unless you open probate or deal with getting Exemption done, the state can view mom as having died “intestate”. Intestate means died without a will. And most states have it such that for intestate all assets of the deceased escheat to the state. Escheat means the assets become under the control of the state. So by “selling” house without a formal legal process & keeping the $, means you could be viewed as having defrauded the state of its asset - the house. Stuff like this snowballs..... state can withhold tax refunds, attach income or suspend eligibility for state programs. I’d be very worried as to how selling house affects any state program your disabled brother qualifies for as he is a heir.

- how do you know what accurate value is? The tax assessor places value which folks often use. But if there are issues you can get a legit appraisal done by a Registered & licensed appraiser who places tiger seal on the document. Realtor comps are not a legal substitute for appraisal. Realtor drawing up comps for a property that they are themselves buying is flat unethical. 

Just what kind of “realtor” is this? With a well established firm with MLS listing? Or is this a realtor / investor who buys distressed & it’s not actually being sold to an individual but to a LLC? It could be that they have to buy it ASAP as they need to close the title transfer before MERP NOI is mailed out & Medicaid lien surfaces so buyer can say they were ok on the title. But that doesn’t get rid of Medicaid claim against the estate which you got $$ from by selling the house which is an asset of the estate. 

- under what legal authority will you be selling the house? 
A dpoa stops upon death. If you open probate & are executor, you can sell assets of the estate & do it with a judges orders. Or you do small estates affidavit or muniment of title. They are all legal ways to sell property. So are you doing any of these?? 
 Just what is this person telling you as how to sign the paperwork? And how are they paying for the house..... cash? a check written to you, your brother or to “estate of”? 

At a bare minimum you should take the unsigned purchase agreement and have an atty review it and wait to get Medicaid recovery & exemption cleared. 
Helpful Answer (2)
Reply to igloo572
Report

It needs a lot of work....
Helpful Answer (0)
Reply to Denamartin40
Report

Den; Please slow down. I would hate to think that an unscrupulous RE agent is trying to take advantage of you, but think about if that what might be happening.
Helpful Answer (3)
Reply to BarbBrooklyn
Report

It needs a lot of work....
Helpful Answer (0)
Reply to Denamartin40
Report

The realtor is buying the house?

Slow down.Why are you in a rush to sell?
Helpful Answer (1)
Reply to BarbBrooklyn
Report

3 days is not enough time. You really need a lawyer familiar with recovery process to make sure it’s a clear title.
Helpful Answer (1)
Reply to Guestshopadmin
Report

Related
Questions