Medicaid Estate Recovery Attorney in Queens & NYC

Are you worried about what happens to your family home if you've received Medicaid benefits? Many families share this concern. The Medicaid Estate Recovery Program can claim costs from the estates of those who received aid after turning 55.

This fear is understandable, and I have researched ways to protect your assets. One key fact: Using trusts can shield your home from recovery by Medicaid.

Medicaid is a federally funded program providing medical care for disabled and elderly individuals. To offset costs, the federal government initiated the Medicaid Estate Recovery Program ("Estate Recovery"). States must seek reimbursement from the estates of individuals who received benefits after age 55.

In New York State, elderly individuals can receive assistance in paying for their medical care, particularly if they reside in a nursing home or receive support from a home health aide. Medicaid allows beneficiaries to retain their primary residence while receiving benefits, with the idea being that they can return home after a nursing home stay or receive home health aide care.

Under the Estate Recovery Program, states are required to place a lien on any real property or co-op remaining in the recipient's name if they required nursing home care. An estate claim is placed on their probate estate as well. This enables Medicaid to seek reimbursement for provided services upon an individual's death. The lien or claim must be settled before any remaining assets can be distributed to beneficiaries, even if a will exists. An experienced estate planning or elder law attorney can shield against financial harm caused by Estate Recovery.

Families can protect their home by engaging in asset protection planning. A knowledgeable estate planning and elder law attorney can assist in establishing a Medicaid trust or asset protection trust during your lifetime, ideally five years before needing care. Your home and other significant assets are transferred into the trust’s name. Once in the trust, these assets are not considered yours when applying for Medicaid and are exempt from Estate Recovery. In New York, unlike in many other states, only probate assets are targeted by Medicaid, so avoiding probate avoids Estate Recovery.

The asset protection trust allows you to live in the house, although it's owned by the trust. Depending on the trust's terms, you can sell and buy new homes (also titled under the trust), and trustees have discretion to use the principal for selected beneficiaries during your lifetime. The trust also functions as an estate planning tool, directing asset distribution after your death.

If asset protection planning wasn't done prior to applying for Medicaid, there are exceptions where estate recovery does not apply:

• The estate of a recipient with a surviving spouse won't be collected during the spouse's lifetime.
• If a blind or disabled child resides in the home, even as adults.
• You can apply for “deferred recovery” if minor children live at home.
• If the property is owned jointly with a surviving sibling who resides there.
• A surviving heir may request “undue hardship” within 30 days of receiving notice from Medicaid if it’s their sole income source due to it being a family business with limited income, a family farm, or if modest-valued property is their primary residence. Undue hardship isn't granted merely to maintain certain lifestyles.

Conclusion

If you worry about Medicaid taking your home, the right steps can help. Using trusts may protect what is yours. Some family members living at home might stop recovery efforts too. Talking to a lawyer can make everything clearer and easier. Consider your family and plan ahead, it could save a lot later on!

FAQs

1. What is the Medicaid Estate Recovery Program?

The Medicaid Estate Recovery Program seeks to reclaim costs from a deceased person's estate, including their family home, for services paid by Medicaid.

2. How does this program affect the family home?

If a person received Medicaid benefits, the state might claim repayment from their estate after they pass away... This can include selling the family home to cover those costs.

3. Are there any exceptions or protections for families?

Yes—there are some protections! For example, if a surviving spouse or dependent child lives in the house, recovery may be delayed or waived.

4. Can families plan ahead to protect their homes?

Absolutely! Families can take steps like setting up trusts or transferring property ownership before applying for Medicaid... It's wise to consult with an elder law attorney for guidance on these options.