Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Understanding Medicaid Estate Recovery in Connecticut
Under state law, the Department of Social Services (DSS) may seek repayment of Medicaid benefits paid on behalf of a deceased recipient from their estate. Connecticut implements estate recovery under Conn. Gen. Stat. § 17b-93c (link). This process applies to assets passing through probate, including inherited real property.
Key Steps in a Medicaid Estate Recovery Claim Against Inherited Property
- Notice of Claim: After the Medicaid recipient dies, DSS sends a written notice of its intent to recover benefits. The notice typically arrives after the estate is opened in probate.
- Identification of Subject Property: The estate administrator must identify all probate assets, including real estate inherited by beneficiaries. Nonprobate transfers may also be subject to recovery if the recipient retained an interest.
- Filing as a Creditor in Probate Court: Under Conn. Gen. Stat. § 17b-93c, DSS must file its claim within the timeframe set by probate rules (often within 90 days of appointment of the executor or administrator). DSS appears as a creditor against the estate.
- Probate Court Review: The probate court reviews the claim. The personal representative can object to the amount or validity. A hearing resolves disputes over exemptions, valuation, or lien priority.
- Sale or Liquidation of Nonexempt Assets: If the property is not exempt or a waiver does not apply, the court may order sale of the inherited property. Net proceeds satisfy the DSS claim.
- Exemptions and Hardship Exceptions: Connecticut law exempts certain assets, including a surviving spouse’s homestead interest, minor or disabled child’s share, and hardship waivers. Beneficiaries can petition for waiver based on undue hardship.
- Distribution of Proceeds: After paying valid claims and court costs, the executor distributes any remaining funds to heirs. DSS receives reimbursement up to the total medical assistance paid.
Helpful Hints
- Gather all estate documents, including the will, probate filings, and benefit statements.
- Review Conn. Gen. Stat. § 17b-93c for detailed recovery procedures.
- Consult probate court local rules for deadlines on creditor claims.
- Explore exemptions early to protect home equity for heirs.
- Consider hiring an attorney experienced in Connecticut probate and Medicaid estate recovery.