UNDERSTANDING MEDICAID ESTATE RECOVERYWINTER 2012

Medicaid Basics for Long Term Care

• Purposes• Asset Eligibility

Estate Recovery

• Law adopted September 30, 2007 – MCL 400.112g-400.112k

• Effective July 1, 2011• Applicable to Long Term Care

Medicaid Recipients Age 55 and Older after Adoption of Law

Estate Recovery

• Recovery of Probate Assets only

• Only Amount of Home Over 50% of Average Value of Homes in the County is Subject to Recovery

Planning to Avoid Estate Recovery

• Joint Ownership• Beneficiary Designations• Ladybird Deeds• Assets in Trust

Exemptions for Probate Assets

1. A Medicaid recipient's spouse.

2. A Medicaid recipient's child who is less than 21 years old.

3. A Medicaid recipient's child who is blind or permanently disabled.

Exemptions for Probate Assets

4. A survivor who lived in the home and provided care that allowed the Medicaid recipient to remain in their home for at least two years immediately prior to the Medicaid recipient's admission into a medical facility.

5. A Medicaid recipient's sibling who has an equity interest in the home and who lived in the home for at least one year immediately prior to the Medicaid recipient's admission into a medical facility.

Undue Hardships Exists

• Can apply for Hardship Waiver if:• The estate is the sole source of income for

the survivors, such as a family farm or business; or

• The estate is a home of modest value; or• A survivor would become or remain

eligible for Medicaid if recovery occurred.

Dark Clouds on the Horizon

• Senator Kahn Bill• SB 404• Expands the scope of recoverable assets• Advocacy opportunity –> Contact your

Senator and Representative

Presented by:

HOWARD H. COLLENS

GALLOWAY AND COLLENS, PLLC26075 WOODWARD AVENUE

SUITE 200

HUNTINGTON WOODS, MICHIGAN 48070

(248) 545-2500

GALLOWAYCOLLENS.COM

DisclaimerThe content of this handout and the accompanying presentation are for informational purposes only. The information presented does not create an attorney-client relationship and is not intended to provide legal advice. As the law is constantly evolving and each case is fact specific, you should contact a qualified attorney to review and analyze the facts and law as they relate to your individual circumstance.

@howardcollens