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Funds remaining in a Special Needs Trust, Pooled Trust, and/or Qualified Income Trust as defined in Section 2615.75.15, are to be recovered up to the amount of Medicaid expenditures paid on the individual’s behalf after the recipient's death. These claims will not require the preparation of an affidavit or filing with the probate court. Because the terms of the trusts and federal law require the trustee to pay any remaining funds to the state up to the amount of Medicaid expenditures, the state's claim is to be presented to the trustee for payment. This is accomplished by letter to the trustee signed by the Estate Recovery Analyst with an explanation of Medicaid expenditures. The claim includes all Medicaid expenditures paid on behalf of the deceased, regardless of age. Pursuant to IC 12-15-2-17, funds remaining in a funeral trust that belonged to a Medicaid recipient after the delivery of all services and merchandise under the contract must be sent to a recipient’s estate or the State up to the amount of Medicaid expenditures paid on the individual’s behalf after the age of fifty-five (55).

4720.00.00 OPENING AN ESTATE If an estate is not opened, any interested party (such as a creditor) may petition the court to open an estate and to request the appointment of an administrator. 10 Prior to petitioning the court, these cases should be evaluated by the Medicaid Estate Recovery Unit in conjunction with an FSSA attorney, to determine if there are sufficient assets in the estate to offset the cost of opening and administering the estate. If not, opening an estate should not be initiated. Cases in which there are sufficient assets or cases where certain non-probate transfers have occurred should be referred to the Office of Attorney General to prepare and file with the court a petition to open an estate and appoint an administrator.

4725.00.00 PRIORITY OF THE CLAIM Payment of debts from resources in the estate of the decedent is made in accordance with legally established priorities. Priority in the payment of claims is important whenever the estate of the deceased is insolvent (such as when the total amount of all claims against the estate exceeds the assets of the estate). If the amount of the FSSA claim is not satisfied in full after distribution of the estate assets, such debt must be considered cancelled. The FSSA attorney should be consulted regarding the order of priority of the FSSA claim in relation to that of other claimants.

4725.05.00 COMPROMISE OF CLAIMS IC 4-6-2-11 provides "No claim in favor of the state shall be compromised without the written approval of the governor and the attorney general, and such officers are hereby empowered to make such compromise when in their judgment, it is the interest of the state so to do."