Texas MERP investigation questions.

She does have a will, and a LBD (done well out of the 60 month lookback, thank God!). I will not do probate, since I am the only heir. No reason to.

No, I don't know why it went so far down in value. I looked on the appraisal of that street where the lot is located, and they're all $3k in value. A really crap piece of property. She deeded it over to me, in 2010, then I deeded it over to my 2 children. Yes, I am her only heir, only child, and her Authorized Representative. I was wondering if they ask the question on the MERP questionnaire, "did you transfer real property within the 60 month lookback". I'm trying to locate a questionnaire, so I can see what questions they ask. But, you answered with some of the questions that are on the "questionnaire".

Oh also they're wanting a copy of the will is about determining if mom died intestate. TX has interstate such that all assets escheat to the state. Which means state is in control. It is a much MUCH more disadvantageous position for family & heirs than would be doing probate where MERP is a class 7 unsecured claim against estate; Executor is class 2, funeral exp class 1; other secured claims class3. TX is level,of claim by class for probate, so class 1 - 6 have to be dealt with first. Comprende?

Coco - ok then.....my understanding is that they are allowed to own as an exempt asset a residential property (can be asked to show homestead exemption if your county/parish does these) & a car if both under a set value (550/800k on house & 15/30k on car & this varies by state). So mom owning this piece of crap property was & is fine as it is viewed as exempt asset.

Now when mom dies, it becomes an asset of her estate and as such is nonexempt. Tx has outsourced estate recovery (MERP) to HMS. HMS regional is in Dallas /Irving area & it's the regional for TX and other states MERP as well. From my perspective in dealing with them, they approach things very systematically & constant much like debt collection agencies. From my not an atty. viewpoint, their letters are highly "legalese" & skew to the view that $ is owed & case closed.They get a % of the recovery as well a contact fees by the states. About 1/3 of states use HMS for MERP. Whomever is on file with tx DADS for contact for your mom will get the NOI and the questionnaire. It will ask for bank balance, life insurance info, property owned, heirs, copy of will, etc & you have a strict timeframe to respond. It states that they have no reason not to find recovery cost effective, here is the amount owned (you can roughly figure this one as Tx pays abt $ 155 a day room & board rate to the NH) and if payment not received interest & fees can be accrued.

HMS will not mention the TAC rule you posted, nor any mention of TAC Rule 373.213 - which is the deductions for property expenses & costs of care (prior to NH so like you paid for a caregiver for a few mos/weeks before she moved into Shady Acres). If you have been paying anything on the property - taxes, insurance, utilities, yard work - its mucho importante to keep records & receipts in detail to clearly establish things pertinent to 373.213. Plus keep all tax assessor statements to again clearly establish value below the federally mandated cost benefit analysis threshold.

Oh also there's a yes OR no ? on if you have opened probate & asks for the PC #.. Now mind you this questionnaire goes out maybe 8-10 weeks after death and most families aren't thinking probate PLUS Tx allows for 4 years to open probate.

To me the ? is what do you (& any heirs) want to do about the property?
It will have costs which must be dealt with by you (or heirs) both now while mom is alive and then after death when you are dealing with MERP and property sale or transfer. Like paying property taxes so it doesnt go to tax sale or keeping yard up so no blight /code issues. So can you pay all costs till whenever and is it worth doing (for whatever reasons you have)? If you get all costs done and present to MERP & get the release of the claim from MERP, do you have the time & money to do a small estates affadavit or muniment of title needed to get the property sold or transferred? It's like you have to do your own cost benefit analysis.....

So 12k to 3k! Wow! So was this due to the whole shale fracking boom?

Also, igloo, I found this under the Texas Administrative Code:
No Medicaid estate recovery claim will be filed if it is not cost effective. A claim will not be cost-effective if:
(1) the value of the recoverable estate is $10,000 or less
would that apply to the $3,000 lot? After her death, that is....

Oh igloo, determination of value is from the local Tax Appraisal District.

igloo, the question is about a person in NH who is still alive. The property in question is a small residential lot, no improvement, very undesirable property. It was disclosed at application in 2014, but no penalty or waiting time for benefits was ever given. Property was transferred in September 2010, entered NH in December of 2013. So, I was wondering if MERP will see this and go ballistic. At the time of transfer, the property was worth $12,000. At the present time, and from 2011 forward, only worth $3,000. A really poor piece of property that my mother bought on a whim in 1986. In 2010, we nor she had any idea she'd be entering a NH. I'm just wondering if MERP will see all this and slam me with penalties. TX is a non fillaial (sp.) state. Or, would they require me to put the lot up for sale (likelihood of someone buying it is 0%) and give them the proceeds of the sale. Do they mess with this small amount of money?

The 5 yr look back refers to information to be provided and reviewed for Medicaid application & Medicaid eligibility. The applicant or the DPOA signs off on the application that the information provided is accurate and with penalty / suspension of eligibility if known assets deliberately left out.

Coco, Is your ? about dealing with Medicaid for someone still alive but there was something left out on medicaid application.....OR is your ? that they have died and you are trying to figure out how to deal with selling or transferring "real" property that is worth 3k and an asset of the estate of the deceased? 3k is pretty low value real property asset....is this raw land?.... or land with a pretty worthless house or building on land? .......or is it O&G/mineral real property? What type of "real property" will make a difference in how to deal with this imho. So what is it? and
How did you determine value is 3k?

MERP goes after all assets after death. Yes they will impose a penalty based on the fair market value of the property. That means the nursing home will not be paid that amount. The nursing home can sue and they will win.
In states that have filial responsibility laws, the courts uphold the right to collect from whoever got the property in question.