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UPDATED: JANUARY 2012

680.7

OTHER ELIGIBILITY REQUIREMENTS

RECOVERIES ESTATE RECOVERIES

• with respect to the home of a deceased Medicaid recipient, when one of the relatives, adult child or sibling as described above, is lawfully residing in the home.

Upon the death of the surviving spouse, or blind or disabled child, or upon the minor child reaching 21 years of age, or in the case of a decedent’s home, upon the adult child or sibling ceasing to reside in the home or the home being put up for sale, the estate claim against the estate that was previously prohibited must be pursued. The claim against such individual for the receipt of such property by distribution or survival is limited to the value of the property received from the estate of the deceased Medicaid recipient or the amount of medical assistance otherwise recoverable, whichever is less.

Deferral of estate recovery on real property is subject to a post death lien if:

• undue hardship has not been found to exist; • the heir or survivor has lawfully and continuously resided in the real property, beginning prior to the deceased Medicaid recipient’s death, and is unwilling to sell the real property; • the Medicaid claim cannot be paid in full unless the property is liquidated; • the heir or survivor is able to demonstrate the inability to obtain financing to pay the estate claim; AND • a written agreement has been entered into between the Medicaid program and the dependent, heir or survivor whereby the Medicaid program holds a lien on such real property and the dependent, heir or survivor agrees to pay the amount of the claim in accordance with a reasonable payment schedule, subject to reasonable interest.

When such deferrals of estate recovery are made, a lien must be filed in the county clerk’s office in the county where the property is located and remain on file to protect the interest of the Medicaid program to the extent of the claim against the recipient’s estate, less any payments actually received toward such claim. Recovery is deferred until: • the death of the dependent, heir or survivor; or • the sale, refinance, transfer or change in title of the real property; or • the determination by the Medicaid program that the dependent, heir or survivor is in breach of the repayment agreement.

MRG