What steps are involved in a Florida Medicaid estate recovery claim against inherited property?

Detailed Answer

When a Florida resident receives Medicaid benefits and later passes away, the Agency for Health Care Administration (AHCA) may recover paid benefits from the recipient’s estate, including inherited property subject to probate. Below is a step-by-step breakdown of the process under Florida law:

1. Open Probate and Inventory Assets
   The personal representative files for probate under Florida Probate Code Chapter 733. They inventory all probate assets, including real property titled solely in the decedent’s name.
2. Agency Files a Claim or Lien
   AHCA determines total Medicaid benefits paid and files a claim in the probate court within 60 days of appointment of the personal representative, per Florida Statutes §409.910. AHCA may also record a lien against real property using the procedure in Florida Statutes §732.901, ensuring recovery upon sale or refinancing.
3. Notice to Creditors
   The personal representative must publish notice to creditors and mail direct notice to known creditors, including AHCA, under Florida Rules of Probate Procedure Rule 5.340. Creditors then have 3 months from publication (or 30 days from direct notice) to file allowed claims.
4. Review and Objection
   Probate court reviews the AHCA claim. Heirs or the personal representative may file objections within the deadline, disputing claim amount or eligibility.
5. Exemptions and Hardship Waivers
   Florida law exempts recovery when a surviving spouse or a resident minor, blind, or disabled child resides in the decedent’s home (§409.910(8)(b)). AHCA may grant a hardship waiver if recovery would impose undue hardship on heirs.
6. Settlement and Distribution
   Once approved, the court orders payment of AHCA’s claim from estate assets. If real property requires sale to satisfy the claim, the court approves sale proceeds distribution—paying AHCA first, then other creditors, and finally heirs.

Because AHCA recovers only from probate assets, property held in joint tenancy, certain trusts, or via life estates generally avoids estate recovery. Heirs should discuss title planning and probate strategies with a qualified attorney before and after a Medicaid claim arises.

Disclaimer: This article is for informational purposes only and does not constitute legal advice.

Helpful Hints

• Initiate probate promptly to establish clear asset titles.
• Compile records of all Medicaid benefits to estimate potential recovery.
• Serve AHCA notice early to avoid late-filed claims.
• Verify if a surviving spouse or minor child exemption applies before sale.
• Explore hardship waivers when estate recovery threatens family stability.
• Consult a probate attorney experienced in Florida Medicaid estate recovery.