952.955.7623
Share

Minneapolis Estate Planning and Probate Lawyer Blog

Thursday, May 29, 2014

What is Estate Recovery?

Minneapolis Estate Planning Attorney Explains Minnesota's Medical Assistance Program. 


Medicaid, known as Medical Assistance in Minnesota, is a federal health program for individuals with low income and financial resources that is administered by each state. This program is intended to help individuals and couples pay for the cost of health care and nursing home care.

Most people are surprised to learn that Medicare (the health insurance available to all people over the age of 65) does not cover nursing home care. The average cost of nursing home care, also called "skilled nursing" or "convalescent care," can be $8,000 to $10,000 per month. Most people do not have the resources to cover these steep costs over an extended period of time without some form of assistance.

Qualifying for Medical Assistance can be complicated as it is governed by a combination of federal state laws/rules. Once qualified for a Medical Assistance subsidy, Medicaid will assign you a co-pay (your Share of Cost) for the nursing home care, based on your monthly income and ability to pay.

At the end of the Medical Assistance recipient's life (and the spouse's life, if applicable), the county who paid for care will begin "estate recovery" for the total cost spent during the recipient's lifetime. The county will issue a bill to the estate, and will place a lien on the recipient's home in order to satisfy the debt. Many estate beneficiaries discover this debt only upon the death of a parent or loved one. I have numerous clients who came to me upon trying to sell their parents' house only to learn - sometimes at closing - that there was a Medical Assistance lien on the property. In many cases, the Medical Assistance debt can consume most, if not all, estate assets.

There are estate planning strategies available that can help you accelerate qualification for a Medical Assistance subsidy, and also eliminate the possibility of a Medical Assistance lien at death. It is very important to consult with an experienced elder law attorney in your jurisdiction.


Archived Posts

2017
2016
2015
December
November
October
August
July
June
May
April
March
February
January
2014
2013
December
November
October
September
August
June
May
April
March
February
January


From within Hennepin County Unique Estate Law represents clients throughout Minnesota, including Minneapolis, Edina, Bloomington, St. Louis Park, Minnetonka, Plymouth, Wayzata, Maple Grove, St. Paul, and Brooklyn Park.



© 2017 Unique Estate Law | Disclaimer
3800 American Blvd., Suite 1500, Bloomington, MN 55431
| Phone: 952-955-7623
333 Washington Avenue North, Minneapolis, MN 55401
| Phone: 952-955-7623
5775 Wayzata Blvd., St. Louis Park, MN 55416
| Phone: 952-955-7623

Estate Planning | Probate | Business Law | Real Estate | Special Needs Planning | Advanced Estate Planning | Commercial Real Estate | Pet Trusts | LGBT Help | Business Succession & Real Estate Matters | Digital Property Rights | Step Parent Adoptions | Fees | LGBT Families

TwitterLinked-In PersonalLinked-In CompanyBlog RSS

Attorney Website Design by
Amicus Creative