Your SlideShare is downloading. ×
Estate Recovery: How to Protect Your Assets from a Reimbursement Claim of the State
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Estate Recovery: How to Protect Your Assets from a Reimbursement Claim of the State

531
views

Published on


0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
531
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ESTATE RECOVERY: HOW TO PROTECT YOURSELF FROM A REIMBURSEMENT CLAIM OF THE STATE OF MICHIGAN
    P. Haans Mulder, JD, MST, CFP®
    Cunningham Dalman, P.C.
    321 Settlers Road
    Holland, MI 49423
    (616) 392-1821
    phmulder@holland-law.com
  • 2. Background
    Attorney and Partner at Cunningham Dalman, P.C.
    Have a Masters in Tax (MST), CFP® and specialize in estates/elder law and business planning
    Serving the Holland area since 1900
  • 3. Background
    Cunningham Dalman, P.C. has been serving the lakeshore since 1900
    We have 15 attorneys specializing in all areas of the law
    Serving the Holland area since 1900
  • 4. Overview
    What is estate recovery and why is it important
    What types of assets does estate recovery apply to
    When does it apply and what does the process look like
    Serving the Holland area since 1900
  • 5. Overview
    How do you protect your assets against it
    What options do you have if it does impact you
    Some other things to be concerned about
    Serving the Holland area since 1900
  • 6. What is estate recovery?
    It is a process that the State of Michigan gets reimbursed for the Medicaid services it has paid for
    It does not put a lien (i.e. a Medicaid lien) on your exempt assets during your life or force a sale 
    Serving the Holland area since 1900
  • 7. What is estate recovery?
    It applies to people age 55 years or older who have received Medicaid (i.e. long term care) services
    Covers Medicaid services back to September 30, 2007
    Serving the Holland area since 1900
  • 8. What assets does estate recover apply to?
    It only applies to assets that have to be probated
    That has the potential to include all assets (house, bank accounts, investments, vehicle, personal property, etc.)
    Serving the Holland area since 1900
  • 9. What assets does estate recover apply to?
    But…the only assets that are typically left are: bank account, personal property (including vehicle), and your house
    The house will be the most significant asset, but do not loose sight of the others
    Serving the Holland area since 1900
  • 10. What does the estate recovery process look like?
    A family member will receive an estate recovery questionnaire when the Medicaid recipient passes
    The form indicates that it needs to be completed in two weeks 
    Serving the Holland area since 1900
  • 11. What does the estate recovery process look like?
    It is not clear what happens next…
    If you have a basis to claim a “hardship waiver,” you need to request that form
    Serving the Holland area since 1900
  • 12. How do you protect against estate recovery?
    The most effective way to protect your house is with a “ladybird deed” because it avoids probate
    There is an attempt to change this so you should consider doing it now if it is “grandfathered”
    Serving the Holland area since 1900
  • 13. How do you protect against estate recovery?
    This deed has other benefits
    The house remains an exempt asset during the Medicaid recipient’s life
    By having the house avoid probate, those costs and that hassle are also avoided
    Serving the Holland area since 1900
  • 14. How do you protect against estate recovery?
    What about other assets besides the house
    You should make sure they avoid probate (i.e. having your trust named as owner, naming a beneficiary, etc.)
    Serving the Holland area since 1900
  • 15. What options do you have if estate recovery impacts you?
    There might be an exemption
    There is an exemption for a Medicaid recipient’s spouse
    An exemption applies if there is a child who is under 21 years old and is living in the house
    Serving the Holland area since 1900
  • 16. What options do you have if estate recovery impacts you?
    An exemption applies if there is a child who is blind or permanently disabled and is living in the house
    Another exemption covers someone who cared for the Medicaid recipient for two years and this delayed Medicaid
    Serving the Holland area since 1900
  • 17. What options do you have if estate recovery impacts you?
    An exemption applies to a Medicaid recipient’s sibling who has an ownership interest in the house and lived there at least one year before the person was admitted to the nursing home
    Serving the Holland area since 1900
  • 18. What options do you have if estate recovery impacts you?
    You might be able to obtain a “hardship waiver”
    This applies to farm or business property
    It also covers a house of “modest value”
    Serving the Holland area since 1900
  • 19. What options do you have if estate recovery impacts you?
    This is defined as a house that is less than 50% of the average value of homes in the county the person lived in
    It is not clear how this will be applied
    Serving the Holland area since 1900
  • 20. Some other things to be concerned about
    When a single person is on Medicaid, he or she can keep the house
    However, he or she will not be able to use Social Security and other income to pay the house expenses
    Serving the Holland area since 1900
  • 21. Some other things to be concerned about
    This typically means that a child or beneficiary must pay these expenses
    You should protect your right to be reimbursed by executing and recording a mortgage against the house
    Serving the Holland area since 1900
  • 22. Some other things to be concerned about
    This gives your reimbursement claim higher priority than the State of Michigan’s estate recovery right
    You will get paid when the house sells
    Serving the Holland area since 1900
  • 23. Some other things to be concerned about
    You should make sure the Medicaid recipient has signed a financial (also known as a general durable) power of attorney
    That way, the agent can execute the mortgage
    Serving the Holland area since 1900
  • 24. This is subject to change so you have to stay informed…
    Serving the Holland area since 1900
  • 25. Stay informed by receiving our monthly newsletter (register by emailing mary@holland-law.com)
    Serving the Holland area since 1900
  • 26. Questions……
    Serving the Holland area since 1900
  • 27. Thank You
    P. Haans Mulder, JD, MST, CFP®
    Cunningham Dalman, P.C.
    321 Settlers Road
    Holland, MI 49423
    (616) 392-1821
    phmulder@holland-law.com
    mary@holland-law.com
    www.holland-law.com
    Serving the Holland area since 1900