Getting qualified for Medicaid can be a lifesaver, covering the astronomical costs of around-the-clock care. However, many people are unaware that the state has the right to recoup its cost by selling assets after death. To avoid this pitfall, consider discussing your estate planning goals with an experienced Brooklyn elder law attorney well in advance, particularly in the context of Medicaid estate recovery New York.
When a person receives Medicaid benefits they are required to have limited financial resources. To ensure that recipients are not spending more than the limit, the state has the right to recoup Medicaid expenditures from the deceased’s estate after his or her passing, which involves the process of Medicaid estate recovery New York. This process is known as Medicaid estate recovery.
States vary in their approach to estate recovery, including the specifics of Medicaid estate recovery New York. In general, they try to recover funds from assets that pass through the probate process. Probate assets typically include bank accounts, real property and personal belongings. However, it is important to understand that not all property passed through the probate process can be recovered by the state, which is a key aspect of Medicaid estate recovery New York. For example, jointly owned assets with a spouse, payable on death bank accounts, living trusts and life insurance policies may not be included in the Medicaid estate recovery New York process.
In addition to probate assets, some states allow recovery from non-probate assets, further highlighting the nuances of Medicaid estate recovery New York. These are assets that have a legal ownership interest that would otherwise require the probate process such as joint tenancy with right of survivorship, living trusts and life insurance policies. Despite the fact that a Medicaid recipient’s family can be forced to sell the family home in order to pay back Medicaid, most families will still want to stay in their home, emphasizing the relevance of Medicaid estate recovery New York. To help them do so, an effective estate plan must be implemented that combines asset protection strategies with other tools like trusts and revocable living trusts, considering Medicaid estate recovery New York.
Can the State Put a Lien on the Family Home?
In New York, a lien cannot be placed on a deceased Medicaid beneficiary’s home unless it is either (1) part of the person’s probate estate being administered in Surrogate Court, or (2) the home is the only substantial asset of the person at their death, which aligns with the specifics of Medicaid estate recovery New York. A lien may also be prevented if the surviving spouse of the deceased Medicaid beneficiary is living in the home, or if the person is certified blind or disabled and lives in the home permanently, illustrating the exceptions in Medicaid estate recovery New York.
Estate recovery can be a significant burden for family members after the death of a loved one, shedding light on the real-world implications of Medicaid estate recovery New York. This is why it is so important to work with an experienced elder law attorney to implement a comprehensive estate and long term care plan early, particularly when dealing with Medicaid estate recovery New York. By doing so, you can ensure that the heirs of your choice are not saddled with a large Medicaid debt.
A claim against an estate is a request for payment by someone who believes the deceased person owes them money. In the case of Medicaid Estate Claims in New York, this request comes from the state Medicaid agency seeking to recoup all or part of the money spent by Medicaid on the deceased individual’s long-term care, involving the process of medicaid estate recovery New York. Generally speaking, the property of a deceased Medicaid beneficiary can include cash in checking and savings accounts, any remaining balances in a Qualified Income Trust and/or Irrevocable Funeral Trust, equity in real estate that is not a primary residence, interest in a life insurance policy with a payable beneficiary, and other assets related to Medicaid estate recovery New York. Depending on the circumstances, a lien can also be placed against one’s home or other property that is not subject to probate, emphasizing the complexities of Medicaid estate recovery New York.
Fortunately, there are some safeguards against Medicaid Estate Recovery. The first is that the state may not recover from the estate of a person who had a spouse, child under 21, or blind or disabled child living at the time of death, providing exemptions within Medicaid estate recovery New York. Also, if the deceased person transferred his or her assets within five years of applying for Medicaid in order to qualify, the state will not be able to recover those funds from the recipient’s estate, which aligns with the concept of Medicaid estate recovery New York. This so-called “look back period” is designed to prevent people from “off-loading” assets to family members in order to qualify for Medicaid.
In addition to these protective provisions, the law limits the amount of money that can be recovered from the estate of a deceased Medicaid recipient, which is crucial in understanding Medicaid estate recovery New York. It can only be recouped from assets that pass through the deceased individual’s probate estate (unless the person is married and their estate goes through a joint-ownership procedure in Surrogate Court). In the past, many individuals were able to avoid these claims by using a variety of planning strategies, including trusts and other non-probate assets, illustrating the strategies for Medicaid estate recovery New York.
Lastly, the state may waive its estate recovery rights where doing so would create an undue hardship, showcasing the flexibility in Medicaid estate recovery New York. This waiver is based on an individualized consideration of each situation by the state, highlighting the personalized aspect of Medicaid estate recovery New York. This process is usually very involved and requires supporting documentation, such as tax returns, pay stubs, Social Security benefit letters, and bank statements, underlining the thoroughness of Medicaid estate recovery New York.
It is important to be aware that even these protections do not apply in every situation, which stresses the importance of proper planning in Medicaid estate recovery New York. Therefore, it is essential for anyone who may be receiving or planning to receive Medicaid benefits to seek the assistance of a qualified elder law attorney, particularly in the context of Medicaid estate recovery New York. A skilled attorney can assist in creating an estate plan that is structured in such a way as to minimize or prevent the need for Medicaid Estate Recovery, taking into consideration Medicaid estate recovery New York. Contact our office for a consultation to explore your options in relation to Medicaid estate recovery New York.
When a person’s health declines and they need help covering the cost of around-the-clock care, Medicaid often helps. While the program features stringent eligibility requirements that look at your current assets and some financial decisions you made in the past, there’s one pitfall that can catch some families by surprise after an older family member passes away and Medicaid estate recovery New York attempts to recoup costs.
Typically, the State of New York will send a letter to a deceased relative or executor asking for reimbursement for the amount that Medicaid spent on their loved one’s long-term care. The goal is to recover the amount it paid from the deceased’s “estate” related to Medicaid estate recovery New York. This includes any real and personal property that passed through a last will and testament (Will) or through the law of intestacy (if there was no Will) associated with Medicaid estate recovery New York.
Some states allow for expanded estate recovery, which allows them to claim some assets that pass outside of the probate process or a court proceeding, such as jointly held assets, assets placed in a living trust or life insurance policies with listed beneficiaries. New York does not allow for “expanded” estate recovery and only seeks to recover from the individual’s probate estate.
In many cases, the family home will be a significant asset and can end up being sold to pay the debt related to Medicaid estate recovery New York. This can be particularly distressing to the surviving spouse, who is not only losing their marital home but also may face a large tax bill as well.
The good news is that careful planning ahead of time can keep the state from being able to go after your family’s home in most cases related to Medicaid estate recovery New York. Taking steps to place your home in a trust or otherwise changing who holds the title will protect it from being claimed by creditors like Medicaid in the future.
If you’re concerned about the risk of Medicaid estate recovery New York, it is important to speak with a Long Island elder law lawyer as soon as possible to learn more about how you can avoid the problem in your own case. Our firm specializes in Medicaid planning and can provide the knowledge and guidance you need to protect your assets related to Medicaid estate recovery New York.
Schlessel Law PLLC | Long Island Elder Law Attorney
34 Willis Ave Suite 300, Mineola, NY 11501, United States
(516) 574-9630