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UPDATED: JANUARY 2012

680.4

OTHER ELIGIBILITY REQUIREMENTS

RECOVERIES ESTATE RECOVERIES

recipient’s per capita interest in a joint bank account as well as jointly owned securities (e.g., stocks, bonds, mutual funds) at the time of his/her death is subject to recovery from the person(s) who is named as the joint owner on the account.

NOTE: If the case record does not contain evidence that rebuts the presumption of 100% ownership by the decedent or the decedent was not subject to a resource test for Medicaid eligibility purposes and the joint owner claims the funds in the joint account were not wholly assets of the decedent, the joint account owner must be allowed the opportunity to provide documentation of his/her interest in the account through verifiable deposits and withdrawals.

• Jointly Held Real Property - real property owned jointly by a Medicaid recipient and one or more other individuals may not have been considered available as a resource during the eligibility process. Whether the property was considered available or unavailable, recovery must be pursued against the deceased recipient’s interest in such property. A post death lien must be filed.

Life Estate Interest - A life estate interest that was created by a recipient or his/her spouse in property in which the recipient or spouse held interest at the time the life estate was created, or a life estate interest that was created for the benefit of a recipient or the recipient’s spouse in property in which the recipient or spouse held any interest within five years prior to the creation of the life estate is subject to estate recovery. The value of the life estate interest is an actuarial computation based on the age of the recipient and the fair market value (FMV) of the property immediately prior to the recipient’s death. Effective September 08, 2011, the Internal Revenue Service (IRS) actuarial table, “Table S, Single Life Factors”, in accordance with the most recent mortality table, “Table 2000CM”, and interest rates under IRS code 7520, “Section 7520 Interest Rates”, must be used for this computation. These tables and rates are found on the IRS website.

Example:

Step 1. Determine the IRS code 7520 interest rate that applies to the month and year of the recipient’s death.

MRG