Estate recovery (MERP) has all sorts of exemptions, exclusions, just what is feasible ime very much interdependent on your states probate & property laws and how the administrative code is for Medicaid. There are exemptions for caregivers, low income heirs, disabled heirs, aged sibling heirs. So what is in the will does matter in those situations. Ditto for Testamentary Trust issues. Some states (TX, FL) are more pro property rights than others are too. There's also a required cost benefit analysis.
But the rub will be that someone will need to pay all property costs, pay probate costs, keep track on all this for MERP & probate, fill out & provide whatever documentation needed for an exclusion, etc and do whatever in a very time sensitive manner for perhaps years. Things are going to require the heirs to deal with or for the Executor to deal with. The States position is as an unsecured creditor and just what happens for unsecured depends on state laws.
when mom dies, the state or it’s outside contractor for MERP will send out a NOI / Notice of Intent (to file for recovery)& it will have a questionnaire on assets, exclusions, exemptions. Personally I think fill out the questionnaire and submit items needed to establish caregiver & maybe low income heir and see if that flies. If not, then plan B & open probate. For caregiver, on the questionnaires ive seen they all want an on professional letterhead a document from the deceased old MD or prior to entering the NH old social worker that indicates why full time caregiver was needed in the home and who (Sonny) provided it and for what period of time. The clusterF on this is IF there's loads of time from since mom was living at home..... then her old doc or old SW may not have records to document from the past what the state wants in the future. So try to stay proactive on all this and keep documentation on caregiving provided for 2 years, all $ fronted on property (some states have it where some property costs are deducted from the Medicaid tally) and let her doctors know that there will likely be a request from you as to caregiving provided sometime in the future.
Are you asking if inheriting a house will affect the sons Medicaid eligibility? The answer is no. He’s on Medicaid health insurance. His monthly income is the only deciding factor. If he needs long term care or home care, then assets come in to play but he will be allowed to own a home without losing his eligibility.
If the mother was on Medicaid and you are actually asking about Medicaid taking her home, then the will is entirely irrelevant. You cannot “will” a house to someone in order to keep Medicaid from clawing back at the estate. In this situation, what is relevant that is that the son lived with mother and took care of her for longer than 2 years which means he’s probably eligible for the caregiver exemption which allows him to remain in the home after his mother’s death.
Question for Cali: We have had a few questions of late about survivors who have been caregiving in the home, and been "left the home in a will". I wasn't aware of what you just said about the two years caregiving. But lets have the hypothetical that the person was caregiving for under two years. Would medicaid FORCE the sale of a home; can they? Or can they only put a lien on a home, and collect the money via "clawback" when the home is sold?
But the rub will be that someone will need to pay all property costs, pay probate costs, keep track on all this for MERP & probate, fill out & provide whatever documentation needed for an exclusion, etc and do whatever in a very time sensitive manner for perhaps years. Things are going to require the heirs to deal with or for the Executor to deal with. The States position is as an unsecured creditor and just what happens for unsecured depends on state laws.
when mom dies, the state or it’s outside contractor for MERP will send out a NOI / Notice of Intent (to file for recovery)& it will have a questionnaire on assets, exclusions, exemptions. Personally I think fill out the questionnaire and submit items needed to establish caregiver & maybe low income heir and see if that flies. If not, then plan B & open probate. For caregiver, on the questionnaires ive seen they all want an on professional letterhead a document from the deceased old MD or prior to entering the NH old social worker that indicates why full time caregiver was needed in the home and who (Sonny) provided it and for what period of time. The clusterF on this is IF there's loads of time from since mom was living at home..... then her old doc or old SW may not have records to document from the past what the state wants in the future. So try to stay proactive on all this and keep documentation on caregiving provided for 2 years, all $ fronted on property (some states have it where some property costs are deducted from the Medicaid tally) and let her doctors know that there will likely be a request from you as to caregiving provided sometime in the future.
If the mother was on Medicaid and you are actually asking about Medicaid taking her home, then the will is entirely irrelevant. You cannot “will” a house to someone in order to keep Medicaid from clawing back at the estate. In this situation, what is relevant that is that the son lived with mother and took care of her for longer than 2 years which means he’s probably eligible for the caregiver exemption which allows him to remain in the home after his mother’s death.