My mother-in-law passed away in November. Her tax return indicates that she is due a small ($180) state tax refund. Since she was on Medicaid for nursing home care I believe this amount is supposed to go back to the state, but there is no place to indicate that on the tax return. It allows my husband to claim it on her behalf. I am wondering if the state will automatically know and intercept it, or if they will send a letter with a bill later?
She had very little of an estate and probate was not needed. Her funeral trust leftovers were sent to the state automatically. Her nursing home resident account as well.
There was a small bank balance in another state that was jointly owned by a friend of hers. He closed it after her death. I think Medicaid could claim that money but as far as my husband and I know, they have not pursued it.
We have possession of her low-value vehicle which currently is still in her name. Our state has a simple form transferring ownership to an heir for a fee. Do we transfer it? Contact Medicaid about the vehicle? Although it is not expensive we don't have the cash to pay out the value amount. The idea of dealing with selling it on behalf of the state is annoying. I don't suppose Medicaid would come get the actual vehicle instead? Heh. We could always donate it to a charity for $0 I suppose.
I think that selling the car for the state beats the h3ll out of having to pay for the care your MIL received or having to move her in to your home and be her caregiver.
Call the contact at Medicaid that worked with your LO and ask them how and what to do.
I'm asking about doing things properly with the bits and pieces left over so as to not inadvertently cause complications. I thought people here may have personal experience to share
I am annoyed about the vehicle, not because of Medicaid specifically but because we have to deal with it at all. There is a personal backstory that isn't relevant to the topic. It is currently frozen to the pavement of our garage slab so it's not moving until spring in any case.
One thing I was surprised about is that they also recover from life insurance regardless of beneficiary. Wow. MIL didn't have an active policy so we didn't have to deal with that one.
My Dad had passed in 2016 and his estate was in Probate for almost 2 years, so during those 2 years my Dad's estate had to pay income taxes.... [sigh]. I have the CPA on speed dial.