Page 249
UPDATED: JANUARY 2012
680.5
OTHER ELIGIBILITY REQUIREMENTS
RECOVERIES ESTATE RECOVERIES
Step 2. Determine the interest rate factor from “Table S”.
Step 3. Multiply the FMV of the property by the interest rate factor from “Table S” to arrive at the life estate value.
NOTE: If the life estate was jointly owned by the recipient, the district must file a post death lien on the real property using the “Notice of Post Death Medical Assistance Lien”.
• Trusts - Any interest the recipient had in a living trust at the time of death must be included in the estate recovery. o Revocable living trusts – when created by the recipient or the recipient’s spouse, the entire value of the principal and accumulated interest is considered an available resource at the time of death and is included in the individual’s estate for purposes of estate recovery. o Irrevocable trusts – when funded in whole or in part with the assets of the recipient or the recipient’s spouse, any principal and accumulated interest that was required to be paid to or for the benefit of the recipient are included in the decedent’s estate for recovery.
NOTE: Exception trusts created for the benefit of a certified disabled individual under age 65, and exception trusts created for the benefit of a certified disabled individual of any age (pooled trusts) are disregarded as available income and resources when determining eligibility. However, these trusts must include provisions giving the Medicaid program a remainder interest of all amounts remaining in the trust, or in the case of a pooled trust, all amounts not retained by the trust, up to the total value of all Medicaid paid on behalf of the disabled individual, payable at the time of the recipient’s death.
• Annuities - The remaining balance or income distribution from an annuity purchased by or with assets of the decedent or the decedent’s spouse is included in the Medicaid recipient’s estate and is subject to recovery regardless of a designated beneficiary. A “payable on death” clause does not alter the status of these funds from being subject to estate recovery as the investment is considered an asset of the recipient at the time of death.
MRG