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Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 38257
Experience:  30 years in civil, probate, real estate, elder law
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My parents live in Arkansas. If one or both of them end up

Customer Question

My parents live in Arkansas. If one or both of them end up in a nursing home--and do the Medicaid spend down--can Medicaid recoup funds from the sale of their house after death?
Submitted: 1 year ago.
Category: Legal
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. Ray here to help you tonight.

Medicaid here can through estate recovery seek to recover payments made for nursing home care. So yes medicaid has estate recovery and they will pursue recovery.Federal law here mandates that all states have these including Arkansas.

Expert:  Ray replied 1 year ago.
Expert:  Ray replied 1 year ago.

Reference

What is Estate Recovery and how does that affect my Medicaid benefits in Arkansas?

To put it simply, when a Medicaid applicant dies, the state of Arkansas will go to that person’s estate and say “We’ve spent money on this person, and we went to get some of that money back.” That expensive house is how the state will recover that money. As the house goes through probate and gets sold, any proceeds go to the state first, and then proceeds will go to the family next.

Can I protect my house from going through estate recovery in my will?

Regardless of what your will says, the state of Arkansas is still first in line to recover proceeds from the estate.

Are there any exemptions or exceptions to estate recovery laws in Arkansas?

There are a few exemptions to estate recovery laws. In these cases, the state would not receive proceeds from the estate as it goes through probate. These exceptions are as follows

  • If the will designates the house to a disabled child

  • If the house is the only asset of the beneficiary

  • If the deceased has children under the age of 21

  • If the home is still occupied by the deceased’s spouse--note they cannot force sale until both spouses decease here.

  • If there is a child who lived in the home for at least two years prior to parent’s death, and that child living there prevented the parent from going to a nursing home

Expert:  Ray replied 1 year ago.

I appreciate the chance to help you tonight.Thanks again.

Expert:  Ray replied 1 year ago.

Susan if you can leave a positive rating it is always sincerely appreciated.