Disclaimer: This article is for educational purposes only. It does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
Detailed Answer
When a Medicaid recipient in Louisiana who received long-term care passes away, Louisiana law and federal rules allow the state to recover costs from the recipient’s estate, including inherited property. The key steps are:
1. Confirm Medicaid Eligibility and Estate Recovery Authority
Louisiana’s Medicaid Estate Recovery Program applies to individuals aged 55 or older who received Medicaid-funded long-term care. Under La. R.S. 46:153.3 (La. R.S. 46:153.3) and federal law (42 C.F.R. § 433.36), the state may file a claim against the estate.
2. Identify and Inventory Estate Assets
The personal representative (executor) must compile a complete inventory of assets, including real property, bank accounts, and personal effects. If the decedent owned a home that passes to heirs, that property enters probate unless it passed via joint tenancy or a transfer-on-death deed.
3. Probate Proceedings and Appointment of Personal Representative
The court appoints a personal representative to manage the estate. The representative must publish notice to creditors and notify the Medicaid Estate Recovery Unit of the decedent’s passing.
4. Notice of Claim by Medicaid Estate Recovery Unit
The Louisiana Department of Health’s Estate Recovery Unit reviews the estate inventory. If the estate has sufficient assets, it issues a formal notice of claim against the estate for Medicaid-paid long-term care.
5. Property Valuation
The Estate Recovery Unit obtains an appraisal of inherited property to determine fair market value. The personal representative may contest valuations by providing alternate appraisals.
6. Filing and Resolution of the Claim in Probate Court
The state files a proof of claim in the probate court. The court adjudicates any disputes over exemptions, valuation, or priority of claims. Certain heirs—such as a surviving spouse or minor/disabled child—may qualify for relief under federal exemptions.
7. Estate Settlement and Asset Distribution
After claims are resolved, the personal representative pays valid debts, including the Medicaid claim. If liquid assets suffice, the estate can pay without selling real property. Otherwise, the court may order sale of inherited real estate to satisfy the claim, then distribute any remaining proceeds to beneficiaries.
Helpful Hints
- Begin probate promptly to meet notice deadlines.
- Gather all Medicaid billing records to verify the amount claimed.
- Check for federal exemptions for a surviving spouse or minor/disabled child.
- Consider hardship waivers if recovery would cause undue hardship to heirs.
- Work with a probate attorney to navigate court procedures and deadlines.