The Short Answer

In Pennsylvania, Medicaid can seek repayment from a deceased recipient’s estate in certain situations, and families sometimes look for a “hardship waiver” to reduce or stop recovery—especially when the main asset is a family home. Whether a waiver is available (and how strong it is) depends heavily on the facts, the type of property, and who inherited it.

Because estate recovery issues can overlap with probate administration, creditor claims, and title to real estate, it’s wise to speak with a Pennsylvania probate attorney before you assume inherited property is protected.

What Pennsylvania Law Says

When someone dies owning property in their name, Pennsylvania probate rules control how that property is collected, paid out to creditors, and distributed to heirs. If there is a surviving spouse (or, in some cases, household family members), Pennsylvania law also provides a limited “family exemption,” which can affect what property is set aside from the estate before distribution.

If you are dealing with an inherited house and a potential claim against the estate, understanding what is (and is not) part of the probate estate—and what can be set aside by statute—often becomes central to evaluating exposure and negotiating outcomes.

The Statute

The primary Pennsylvania statute that can come into play when a family is trying to preserve certain estate assets is 20 Pa.C.S. § 3121.

This statute establishes that a surviving spouse (or, if no spouse, certain household family members) may claim a family exemption from the decedent’s property up to a set dollar amount, subject to statutory conditions.

For a broader discussion of estate recovery concerns in Pennsylvania, you may also find helpful: Will Pennsylvania Medicaid or Medicare try to recover benefits from my mother’s estate?

Why You Should Speak with an Attorney

Even when families use the phrase “hardship waiver,” the real legal question is usually: (1) what property is legally reachable as part of the estate, and (2) what defenses, exemptions, or limitations apply. Applying those rules to inherited real estate is rarely straightforward.

• Strict Deadlines: Probate and creditor-claim timelines can move quickly, and delays can affect leverage and available options—especially once real estate is being marketed, transferred, or refinanced.
• Burden of Proof: If you claim an exemption or argue that recovery would be an undue hardship, you typically need documentation (occupancy, relationship/household status, valuations, estate accounting, and how title passed).
• Exceptions and Property Classification: Whether the home passed through probate, by deed, by beneficiary designation, or through another mechanism can change the analysis. In addition, the family exemption under Pennsylvania law is limited and fact-specific, and it may not solve a large claim by itself.

Trying to handle this without counsel can lead to avoidable outcomes—like transferring property in a way that creates title problems, triggering litigation in Orphans’ Court, or losing negotiating room with the agency or estate creditors.

If your concern is specifically about an inheritance and benefits eligibility, see also: Can an Inheritance Affect My Medicaid or Food Stamps Eligibility in Pennsylvania?

Get Connected with a Pennsylvania Attorney

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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.