Is there a time limit for Medicaid to recover funds?
May 3, 2016 12:23 PM Subscribe
When a person who is on Medicaid dies, how long does Medicaid have to recover funds from the estate?
As some of you know, my mother passed away back in early December. Medicaid was paying part of her nursing home costs. I was under the impression that Medicaid can recover costs from the deceased's estate. Because of that, as executor, I have kept mom's bank account open until...something?...happens.
Recently, though, my wife was told by a co-worker that Medicaid has five months from the person's death to recoup whatever money it can. After which, any remaining funds can be dispersed as the executor sees fit. Five months is this month (May).
Was my wife misinformed?
If so, how long should I keep mom's bank account open? Indefinitely seems kind of extreme, though. On the other hand, I really don't want to disperse the remaining funds, only to have Medicaid come sniffing around because I violated some deep-hidden, double-secret rule about this stuff.
As some of you know, my mother passed away back in early December. Medicaid was paying part of her nursing home costs. I was under the impression that Medicaid can recover costs from the deceased's estate. Because of that, as executor, I have kept mom's bank account open until...something?...happens.
Recently, though, my wife was told by a co-worker that Medicaid has five months from the person's death to recoup whatever money it can. After which, any remaining funds can be dispersed as the executor sees fit. Five months is this month (May).
Was my wife misinformed?
If so, how long should I keep mom's bank account open? Indefinitely seems kind of extreme, though. On the other hand, I really don't want to disperse the remaining funds, only to have Medicaid come sniffing around because I violated some deep-hidden, double-secret rule about this stuff.
According to the state of Indiana's website here, the state "has up to nine (9) months after the Medicaid recipient’s death to seek recovery of assets not included in the recipient’s probate estate."
posted by MCMikeNamara at 12:39 PM on May 3, 2016
posted by MCMikeNamara at 12:39 PM on May 3, 2016
In Indiana, they say it's nine months, but only for assets that are outside of probate. For probated assets, there is no time limit, and there is no time limit for unreported assets. These might be federal rules applicable in other states as well.
posted by beagle at 12:39 PM on May 3, 2016
posted by beagle at 12:39 PM on May 3, 2016
There's probably a limit to when probate is supposed to be completed by, though --- don't know about Indiana, but Virginia says one year, at which time the estate should be closed, with all bills paid.
I'm assuming you're not a lawyer, and are handling your mother's estate through the probate court? Call and ask them, they're used to dealing with non-lawyer executors.
posted by easily confused at 12:59 PM on May 3, 2016
I'm assuming you're not a lawyer, and are handling your mother's estate through the probate court? Call and ask them, they're used to dealing with non-lawyer executors.
posted by easily confused at 12:59 PM on May 3, 2016
Response by poster: Um...There was no probate. After the spend-down for Medicaid, there wasn't anything left of her estate save for the money in her account, clothes and a cheap dresser.
posted by Thorzdad at 1:15 PM on May 3, 2016
posted by Thorzdad at 1:15 PM on May 3, 2016
Here's the information on estate recovery from Indiana's Family and Social Services Administration.
posted by nubianinthedesert at 1:23 PM on May 3, 2016
posted by nubianinthedesert at 1:23 PM on May 3, 2016
Response by poster: Here's the information on estate recovery from Indiana's Family and Social Services Administration.
Speaking, again, with the tax attorney, it was decided that the following wording ec links to...
posted by Thorzdad at 4:03 AM on October 22, 2016
Speaking, again, with the tax attorney, it was decided that the following wording ec links to...
The State has up to nine (9) months after the Medicaid recipient’s death to seek recovery of assets not included in the recipient’s probate estate...The State of Indiana is not barred by any time limitations when filing a claim against a probated estate. The State can file a claim so long as the probate estate is open....means that the state had nine months to recover assets, since there was no probate estate. The first week of September marked the nine month limit.
posted by Thorzdad at 4:03 AM on October 22, 2016
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posted by brainmouse at 12:35 PM on May 3, 2016