FastCounsel

Disclaimer: This article provides general information only. It does not constitute legal advice. Consult a qualified attorney for advice about your specific situation.

Detailed Answer

If you inherit real property in Mississippi and later apply for Medicaid long-term care benefits, the state may seek to recover costs from your estate under federal law (42 U.S.C. §1396p(b)) and through Mississippi’s Estate Recovery Program. You can request a hardship waiver to protect an inherited home when recovery would cause undue financial or personal hardship.

1. Understand Mississippi Estate Recovery

• Under federal law, Mississippi must recover Medicaid benefits paid for long-term care from the estates of deceased beneficiaries. See 42 U.S.C. §1396p(b).
• Mississippi’s Division of Medicaid administers its Estate Recovery Program. Review program details at medicaid.ms.gov/estate-recovery/.

2. Qualify for a Hardship Waiver

Federal regulation 42 C.F.R. §433.36 allows states to waive recovery if it creates “undue hardship.” Mississippi follows these guidelines to evaluate waiver requests:

• Assess the beneficiary’s surviving spouse or dependents—recovery may be waived if it would impair their ability to live in the home or meet basic needs.
• Consider property value, marketability, and expected recovery amount.
• Evaluate whether the heir served as a primary caregiver or faces severe financial constraints.

3. Gather Supporting Documentation

Prepare a waiver application packet that includes:

• Proof of ownership and fair market value of the inherited property (appraisal or tax assessment).
• Household income, asset, and expense statements for you and any surviving spouse or dependents.
• Medical records or letters demonstrating the need of a spouse or dependent to remain in the home.
• Evidence of inability to refinance, sell, or otherwise satisfy the estate recovery lien without hardship.

4. File the Hardship Waiver Request

1. Obtain the Estate Recovery Hardship Waiver form from the Mississippi Division of Medicaid’s website or local Medicaid office.
2. Complete all sections, attach supporting documents, and sign under penalty of perjury.
3. Mail or hand-deliver the packet to the Estate Recovery Unit at:

4. Keep copies of everything you send. Request a return receipt if you mail the package.

5. Follow Up and Appeal if Needed

• Division of Medicaid must decide within 90 days of receipt. If approved, they will record the waiver and remove the lien on the property.
• If denied, you have the right to request an administrative hearing under Mississippi Code §25-43-5. Contact the Hearing Review Office at 1-800-421-2408.

Helpful Hints

• Start early: Gathering appraisals and medical records can take weeks.
• Stay organized: Use a checklist to track all forms and deadlines.
• Seek free legal help: Contact Mississippi Center for Legal Services at 1-800-498-1804.
• Document hardship clearly: Detailed, dated letters can strengthen your case.
• Keep copies: Always retain duplicates of applications and envelopes.