{"id":1047,"date":"2019-08-29T15:12:50","date_gmt":"2019-08-29T22:12:50","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/probate\/?p=1047"},"modified":"2024-04-19T15:48:52","modified_gmt":"2024-04-19T22:48:52","slug":"medicaid-take-home-after-death","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/probate\/blog\/medicaid-take-home-after-death\/","title":{"rendered":"Can Medicaid Take Your Home After Death in Arizona?"},"content":{"rendered":"
Medicaid in Arizona provides health care assistance for lower-earning residents, disabled people, the elderly<\/a>, families and children. According to federal law, each state in the U.S. has a Medicaid estate recovery system. This program applies to people who have received Medicaid (also known as ALTCS<\/a> in Arizona) before and are older than 55 or permanently institutionalized.<\/p>\n If you fit into one of these categories, then your estate might encounter a \u201cdeath tax<\/a>\u201d or Medicaid lien once you pass on. Getting Medicaid benefits can help you bypass the need to sell your house to cover your long-term care costs. However, this doesn\u2019t automatically mean your home is protected; it just means you\u2019re not required to sell it while you\u2019re still alive. In some cases, you may benefit from a legal professional\u2019s advice.<\/p>\n The state pays significant sums to cover healthcare costs for Medicaid recipients and may need to seek out reimbursement. There are at least two ways these costs may be recovered, such as property liens and estate recovery. Property liens could lead to a recipient losing their home. So, this means that Medicaid can take your home after death.<\/p>\n Estate recovery is part of the federal Medicaid laws in each state. When an ALTCS recipient who is older than 55 passes on, the state will attempt to receive reimbursement for healthcare costs from their estate<\/a>, for the benefits that individual received. There are a few exceptions to this standard, in which states cannot recover costs for Medicaid. Here are some examples:<\/p>\n If their spouse is still alive, the state may not recover the deceased person\u2019s former home. This applies no matter where the spouse lives at the time.<\/p>\n If the deceased person has a child who lived in their home for a minimum of two years before the deceased person passed on, the state may not be able to recover costs. The child must still reside in the home and be able to prove that they provided care that delayed the deceased person\u2019s institutionalization, for this exception to apply.<\/p>\n If there\u2019s a surviving child who is disabled, blind, or younger than 21, the state cannot go after the deceased person\u2019s former home after they pass on. This also applies regardless of where the surviving child is living.<\/p>\n If the deceased person\u2019s sibling lived in the home during the year before institutionalization and still lives in the house with an equity<\/a> interest in the property, the state can\u2019t go after the home.<\/p>\n Medicaid might waive recovery if the process will bring undue hardship to the heirs of the deceased. To prove that you\u2019d suffer undue hardship, you\u2019ll need to make an argument in writing and include financial information that proves it.<\/p>\n Arizona can choose to place a lien on the home of the Medicaid recipient while they\u2019re still alive, unless there are certain dependent people living there. A lien<\/a> is method for securing payment for an obligation or debt through a security interest applied to property. The person who benefits from the lien is the lien holder or lienor, while the person who owns the property and grants the lien is called the lienee.<\/p>\n If the property is sold while the Medicaid recipient is still alive, they might lose their coverage due to excess assets and the obligation to cover the lien using the sale proceeds. The recipient isn\u2019t obligated to satisfy the lien if they return home before they pass on or one of the specific individuals (mentioned previously) lives on the property.<\/p>\nWhat Happens Once a Medicaid Recipient Passes?<\/h4>\n
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What is Estate Recovery?<\/h4>\n
The Deceased Person\u2019s Spouse is Still Alive<\/h4>\n
The Person\u2019s Child Served as a Caregiver<\/h4>\n
There\u2019s a Disabled, Blind, or Minor Surviving Child<\/h4>\n
The Deceased Had a Live-In Sibling Caregiver<\/h4>\n
Recovery Will Bring Undue Hardship<\/h4>\n
Property Liens and Medicaid Recovery<\/h4>\n
How Working With an Attorney Can Help<\/h4>\n