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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10808
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Mother was on Medicaid. She passed away on June 6 this year.

Customer Question

Mother was on Medicaid. She passed away on June 6 this year. Can I go ahead and sell her house or do I need to wait till someone with medicaid lets me know if they're going to take it?
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

Hi,

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Likely the state has already placed a lien on the property.

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See this from Health and Human Services (This is from their piece - Medicaid treatment of the Home ...)

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From the section titled "HOMES AS PART OF MEDICAID ESTATE RECOVERIES AFTER DEATH"

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Estate recovery is prohibited -- and the home protected -- if the recipient is survived by a spouse, or a child under the age of 21 or blind or permanently disabled. These survivors are free to do with the home as they wish.

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The laws of some states (e.g., Florida and Texas) protect the decedent’s home by placing certain interests of survivors ahead of the claims of some or all creditors, including Medicaid.

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Other states place liens on homes occupied by surviving spouses of deceased Medicaid recipients. Like TEFRA liens on homes of living recipients, post-death liens on the home are filed with the local property office.

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While these liens cannot interfere with the spouse’s right to sell the property and use the proceeds as he or she wishes, they ensure that the State is notified of any attempt to transfer the property, and they protect the State’s right to recover from the home’s equity at a later time if it becomes part of the spouse’s estate.

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So as you can see if there's no spouse it's very likely that a lien has already been placed.

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You can check that with your local tax assessors office or deed-room at the courthouse

Expert:  Lane replied 1 year ago.

Is it possible that an adult child or sibling is living in the home?

Expert:  Lane replied 1 year ago.

See this:

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Estate recovery is also prohibited in certain instances if a recipient’s sibling or adult child still lives in the home. Siblings must have an equity interest in the home and have lived there for at least 1 year immediately before the deceased Medicaid recipient was institutionalized. Adult children must have lived in the home for at least 2 years immediately before the deceased Medicaid recipient was institutionalized and have provided care that may have delayed the recipient’s admission to a nursing home or other medical institution.

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So of you can let me know more of the details I can give a more specific answer

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But checking to see if there has been a lien placed so that any attempt to sell would give them a "heads-up" might be the first step to see where things are

Expert:  Lane replied 1 year ago.

Ok I still don't see you coming into the chart here.

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Please let me know if you have additional questions or want help in working through the details here.

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But if this HAS helped, (and you don’t have additional questions on this), I'd really appreciate your positive rating … (by using the stars on your screen) … … That’s the only way I'll be credited a portion of what you've paid JustAnswer.

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Thank you,

Lane

Expert:  Lane replied 1 year ago.

Did you see my answer?

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Let me know if you need more here

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Lane

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