How Nebraska Medicaid Estate Recovery Can Affect a Parent’s Home — What You Need to Know

Short answer: Under federal law and Nebraska’s Medicaid program, the state can pursue recovery of certain Medicaid benefits from the estate of a deceased beneficiary. That can include filing a claim against real property after the beneficiary dies. Medicaid cannot legally force a living person to sign over title to a property; however, estate recovery rules, look‑back/transfer penalties, liens, and probate claims can affect ownership and what happens to the home after the Medicaid recipient dies.

Detailed answer — how recovery works in Nebraska

What is Medicaid estate recovery?
Federal law (42 U.S.C. §1396p) requires states to seek reimbursement from the estates of deceased Medicaid recipients for certain benefits paid for long‑term care and related services. Nebraska participates in that federal program, so the Department of Health and Human Services pursues allowable estate claims to recover paid long‑term care costs.

When can the state make a claim?
Generally, Nebraska’s recovery efforts occur after the Medicaid beneficiary dies. Recovery typically targets the beneficiary’s probate estate — that is, assets that pass through probate, including a home owned solely in the deceased person’s name. Some states also pursue liens or other interests in property under limited circumstances; whether Nebraska files a lien or records a claim varies by program rules and case facts. For general federal law on estate recovery, see 42 U.S.C. §1396p: https://www.law.cornell.edu/uscode/text/42/1396p. For Nebraska Medicaid program information, see Nebraska DHHS: https://dhhs.ne.gov/.

Can Nebraska Medicaid force you to sign over the deed while the beneficiary is alive?
No. Medicaid cannot legally compel a living person to sign away title to real property. Title transfers require the owner’s voluntary signature (or a court order in very limited circumstances). If you are listed on the deed, Medicaid cannot make you sign it away. If the owner is incapacitated, transfers normally must be made through an established legal process (durable power of attorney, guardianship/conservatorship, or court‑ordered sale) — and those processes still require court oversight and legal safeguards.

Can Medicaid place a lien or otherwise affect the property before death?
Most Medicaid estate recovery happens after death. However, states may have procedures to protect state interests, such as recording a claim or lien when there is a likelihood of recovery. Whether and when Nebraska records a lien or other encumbrance depends on program rules and the facts of the case. Because practices can change, you should check Nebraska DHHS guidance or speak with counsel experienced in Nebraska Medicaid matters.

What protections or exemptions might prevent recovery against a home?

• Surviving spouse: A home occupied by a surviving spouse is often exempt from recovery while that spouse lives in it.
• Minor or disabled dependent child: If a child of the deceased who is under 21 or who is blind/disabled lives in the home, states generally must protect the property while that child lives there.
• Hardship waivers or undue hardship exceptions: States must allow for waivers in certain hardship situations; rules and availability vary by state and by the particular claim.
• Assets that do not pass through probate: Property held in certain ways (joint tenancy with rights of survivorship, some trusts, beneficiary deeds, or other non‑probate arrangements) may not be subject to estate recovery, though transfers into these forms can trigger other eligibility issues and look‑back penalties.

What about transfers of the home before applying for Medicaid?
A transfer of the home for less than fair market value may trigger a penalty period under Medicaid’s transfer rules (the federal 5‑year look‑back period). That penalty can delay Medicaid eligibility for long‑term care benefits and does not necessarily prevent later estate recovery. Attempting to avoid estate recovery by transferring property shortly before applying for Medicaid can create serious eligibility problems and may be treated as an improper transfer.

Practical outcomes you may see in Nebraska
If the mother owned the home in her name only and received Medicaid long‑term care services, Nebraska may file a claim against her estate after she dies. If the home passes through probate, the state can seek reimbursement from the probate estate. If the home was transferred earlier into a different ownership form, that may affect recovery and eligibility — but transfers done to try to “hide” assets often cause penalties or are reversed in probate/estate proceedings.

Steps you can take right now

1. Get any Medicaid notices in writing. Read them carefully and note deadlines for appeals.
2. Ask Nebraska DHHS for details of the claim: what benefits are being recovered, the amount, and the legal basis.
3. If your mother is still alive and competent: do not sign away the deed without independent legal advice. Signing under pressure can create other legal problems.
4. If you receive notice of a claim or lien, file an administrative appeal or request a hearing within the deadline. Administrative procedures often stop or delay collection while the appeal is pending.
5. Document exemptions: prove a surviving spouse, minor/disabled child, or other protected status with documentation to the agency and the probate court.
6. Talk to an attorney who handles Nebraska elder law, Medicaid, and probate. They can review options: hardship waivers, probate planning, life estate deeds, trusts, or other steps — keeping in mind timing and the Medicaid look‑back rules.

When to get legal help

Because Nebraska and federal rules interact and the facts matter (who owns the home, whether someone else has legal interest, whether transfers occurred, whether the beneficiary is still alive, and whether a surviving spouse or dependent child exists), consult a Nebraska attorney who handles Medicaid/elder law and probate as soon as you learn of any claim. An attorney can help you file appeals, evaluate exemptions or waivers, and advise on lawful estate planning steps that do not trigger penalties.

Helpful links

• Federal Medicaid estate recovery law — 42 U.S.C. §1396p: https://www.law.cornell.edu/uscode/text/42/1396p
• Nebraska Department of Health and Human Services: https://dhhs.ne.gov/

Disclaimer

This article explains general principles about Medicaid estate recovery and Nebraska policy. It is informational only and is not legal advice. For advice about a specific situation, contact a licensed Nebraska attorney.

Helpful Hints

• Do not sign the deed under pressure. Transfers should be done only after legal advice.
• Keep all Medicaid and probate notices and act quickly on appeal deadlines.
• Check whether the home passes through probate; non‑probate transfers change how recovery works.
• Check if a surviving spouse or a dependent child lives in the home — those facts often prevent immediate recovery.
• Be cautious about “quick fixes” (e.g., gifting the house) — they can trigger Medicaid penalties and later challenges.
• Request a hardship waiver if recovery would cause undue hardship and gather supporting documents.
• Get an elder law or probate attorney early — they can often stop or reduce recovery through appeals or proper estate planning.
• Ask Nebraska DHHS for written explanations of claims so you can give precise information to an attorney.