Understanding Medicaid Estate Recovery in Georgia
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
What Is Medicaid Estate Recovery?
Medicaid estate recovery allows the State of Georgia to recover certain Medicaid benefits paid on behalf of a beneficiary after their death. Recovery typically targets assets in the beneficiary’s probate estate, including inherited real property. The program is authorized under O.C.G.A. § 49-4-159 and administered by the Georgia Department of Community Health (DCH). Learn more at DCH.
Step 1: Identification of the Probate Estate
After the Medicaid recipient dies, the probate court appoints a personal representative (executor or administrator). The rep gathers assets, which may include real estate, bank accounts, and personal property. Inherited property passes through probate unless it was held jointly or in a trust.
Step 2: Notice of Claim
The Georgia DCH must file a written claim against the probate estate. Under O.C.G.A. § 49-4-159, the claim must include the total Medicaid benefits paid and a description of the estate’s assets. The court clerk notifies heirs and creditors of the claim.
Step 3: Valuation of Property
The personal representative obtains an appraisal or performs a market analysis to determine the fair market value of inherited real property. This valuation establishes the amount available for recovery.
Step 4: Prioritizing Claims
Probate claims follow a statutory priority order. Funeral expenses, taxes, secured debts, and administrative costs take precedence. Medicaid recovery ranks after these obligations. If assets remain, the state may enforce its claim.
Step 5: Liquidation or Settlement
The personal representative may sell the property or negotiate a cash settlement with DCH. In some cases, heirs can preserve real property by refinancing or using other assets to satisfy the claim.
Step 6: Objections and Appeals
Heirs or the personal representative may object to the amount or validity of the claim. Georgia law allows filing an objection in probate court within 30 days of notice. If unsuccessful, parties may pursue an administrative appeal with DCH or a separate civil action.
Step 7: Closing the Estate
Once the Medicaid claim is resolved—either by payment, settlement, or court order—the personal representative completes asset distribution to heirs and files a final accounting. The court then issues an order of discharge, closing the probate estate.
Helpful Hints
- Review the Georgia Department of Community Health’s Medicaid Estate Recovery guide for detailed forms and deadlines.
- Gather all estate documents early—including wills, deeds, and bank statements—to streamline probate.
- Obtain at least two independent appraisals for real property to support fair valuation.
- Consider alternatives to liquidation, such as refinancing or buying out co-owners, to keep family property intact.
- File objections promptly and document any disputes over billing or asset valuation.
- Consult a probate attorney experienced in Medicaid recovery to explore negotiation or appeal strategies.