The most common questions regarding Estate Recovery:

Who is affected by Estate Recovery?
Individuals 55 and older that initially apply for benefits in the nursing home or outside a nursing home after March 1, 2005.

Will the state take my home?
Estate Recovery allows the state to place a claim against a deceased Medicaid recipient's estate, but the state will not 'take' the home while that individual is living.

Are there any situations when Estate Recovery does not apply?
The state will not seek recovery when there is:
1) A surviving spouse
2) A surviving child that is blind or disabled or under age 21
3) An unmarried adult child that was continuously living in the home for at least one year prior to the Medicaid recipient's death
4) The value of the deceased Medicaid recipient's estate is less than $10,000
5) The cost of Medicaid services to recover is less than $3,000
4) An undue hardship waiver applies

What is an undue hardship waiver? (In this section, heirs refers to the heirs of the deceased Medicaid recipient)
Some undue hardships that the state considers valid reasons not to seek recovery are:
1) The property is the site of a family business or farm that has been in operation for at least one year prior to the death of the Medicaid recipient. The business must be the primary source of income of the heirs, and other income factors apply.
2) Recovery would result in an heir becoming eligible for public or medical assistance
3) Allowing an heir to receive the property would also result in the heir to stop receiving public assistance
4) The state will not seek recovery when the value of the homestead is less than $100,000 AND at least one sibling or direct descendent that would inherit the homestead has a gross household income of less than 300% of the Federal Poverty Level

Should a nursing home resident consider moving back home in order to protect their house?
In our opinion, no. The resident would not be in the nursing home unless the care that the home provides was needed. The resident or responsible party should contact us so we can review their situation and determine if there is a way to preserve their house and/or other assets.

Some information has been adapted from the Texas Estate Recovery rules which can be found at: http://www.hhsc.state.tx.us/medicaid/EstateRecovery/TAC_C373.html