Detailed Answer
When a South Carolina resident receives Medicaid benefits, the state may recover costs from the recipient’s estate under S.C. Code Ann. § 38-5-330. This recovery can include real property such as an inherited home. You can, however, apply for a hardship waiver to protect your inherited property from an estate recovery claim.
1. Review South Carolina Medicaid Estate Recovery Rules
Under S.C. Code Ann. § 38-5-330 (https://www.scstatehouse.gov/code/t38c005.php#38-5-330), the South Carolina Department of Health and Human Services (SCDHHS) must seek reimbursement from estates of recipients aged 55 or older. Upon the recipient’s death, the state may place a lien on any real property in the estate.
2. Determine Hardship Waiver Eligibility
SCDHHS allows an estate recovery waiver when recovery would cause undue hardship. You may qualify if you demonstrate that enforcing recovery would:
- Deprive a surviving spouse of their primary residence.
- Force an adult child with a permanent disability out of the family home.
- Create severe financial hardship for a dependent heir.
3. Gather Required Documentation
Prepare the following items to support your waiver request:
- Death certificate of the Medicaid recipient.
- Proof of inheritance such as a will or probate documents.
- Property deed and professional appraisal to establish value.
- Evidence of dependent status (medical records, proof of primary residence).
- Financial statements showing income, expenses, and undue hardship.
4. Complete and File the Hardship Waiver Application
Download Form SC-DHHS-1850B (Hardship Waiver Application) from the SCDHHS website. Fill out the form completely, attach all supporting documentation, and submit via mail or email:
SCDHHS Estate Recovery Unit
1801 Main Street, Suite 800
Columbia, SC 29201
Email: ERU@scdhhs.gov
Phone: 1-888-549-0820
5. Follow Up and Appeal if Necessary
SCDHHS typically responds within 60 days. If your hardship waiver is denied, you have 30 days to request an administrative hearing under S.C. Code Ann. § 38-5-330(F). At the hearing, you can present additional evidence demonstrating the hardship of estate recovery.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Helpful Hints
- Submit your waiver application promptly to meet all deadlines.
- Keep copies of every document you send and receive.
- Obtain a current, professional appraisal of the inherited property.
- Maintain detailed records of any dependents’ medical or financial needs.
- Consider consulting an elder law attorney for personalized guidance.