Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
New York’s Medicaid Estate Recovery Program seeks repayment from the estates of Medicaid recipients aged 55 or older. If you inherit property that the state targets for recovery, you may qualify for a hardship waiver under Social Services Law § 369-a(5) if enforcing recovery would create an undue hardship. The waiver can protect inherited real property—often a family home—if the heir can prove financial strain or other qualifying factors.
1. Know the statutory basis
Under Social Services Law § 369-a(5), the Department of Health (DOH) may waive recovery to prevent undue hardship. State regulations at 18 NYCRR 360.7.4 define hardship criteria, including:
- Low equity in the inherited property (after a $25,000 homestead exemption).
- Family members’ inability to maintain housing costs (mortgage, taxes, insurance, repairs).
- Medical or disability-related expenses that exceed income and assets.
2. Meet timing and notice requirements
After the Medicaid recipient’s death, DOH issues an Estate Recovery Notice to the executor or administrator. You must request a hardship waiver within 60 days of that notice. Missing this deadline can forfeit your right to relief. If DOH moves to sell the property before you apply, file your waiver request immediately to halt proceedings.
3. Gather necessary documentation
To build a strong waiver application, collect:
- Death certificate and letters testamentary or letters of administration.
- Property appraisal or tax assessment showing current value and equity.
- Mortgage statements, property tax bills, and homeowner insurance premiums.
- Household income records (pay stubs, Social Security statements, pension details).
- Monthly expense records (utilities, medical bills, repair estimates).
4. Submit a written waiver request
Send a detailed hardship waiver petition to the local Department of Social Services (DSS) or the DOH Bureau of Estate Recovery. Your letter should:
- Identify the decedent, estate file number, and property address.
- Explain why recovery creates undue hardship (financial breakdown, family impact).
- Attach all supporting documents.
- Include contact information and a request for a prompt determination.
Mail your package via certified mail, return receipt requested, or deliver it in person to the DSS estate recovery unit.
5. Appeal an adverse decision
If DOH denies your waiver, you can request an administrative hearing within 30 days of the denial date under Social Services Law § 22. At the hearing, present your financial evidence and any witness testimony to support undue hardship.
Helpful Hints
- Begin property valuation promptly to avoid delays.
- Consult a qualified elder law attorney or legal aid office early in the process.
- Keep copies of all correspondence and proof of delivery.
- Track deadlines on a calendar and set reminders for appeals.
- Consider negotiating a partial payment plan if full waiver is denied.