Medicaid and estate recovery in Michigan
February 6, 2021
Whether your loved one recently died or you are thinking about the distribution of your assets after your death, there are multiple issues to consider. Aside from naming beneficiaries and placing someone in charge of your estate, it is important to take a look at other factors that impact some estates. For example, some estates are subject to recovery in Michigan.
When it comes to estate recovery and other facets of estate planning, probate and the distribution of assets, there are many different factors that impact estates and you need to keep in mind that every estate is unique.
When is an estate subject to recovery?
According to the Michigan Department of Health and Human Services, estate recovery impacts the estates of Medicaid beneficiaries, in some instances. For starters, estate recovery in Michigan only impacts Medicaid recipients 55 and older. Moreover, in order for the state to seek recovery, a Medicaid beneficiary must have obtained long-term care following September 30, 2007.
Are estates exempt from recovery?
In some instances, the estates of Medicaid beneficiaries who obtained long-term care are exempt from recovery. For example, if a Medicaid beneficiary has a disabled or blind child, their estate is exempt from recovery. Moreover, if a beneficiary has a child under the age of 21 or a spouse, their estate is not subject to recovery. Sometimes, people are also able to pursue an undue hardship waiver in order to prevent estate recovery. Undue hardship waivers are an option when applicants have under $10,000 in household resources and live below the poverty level.