Discusses the basics of Michigan Medicaid Estate Recovery as of January 2012.

1. UNDERSTANDING MEDICAID ESTATE RECOVERY
WINTER 2012

2. Medicaid Basics for Long Term Care
• Purposes
• Asset Eligibility

3. Estate Recovery
• Law adopted September 30, 2007
– MCL 400.112g-400.112k
• Effective July 1, 2011
• Applicable to Long Term Care
Medicaid Recipients Age 55 and
Older after Adoption of Law

4. Estate Recovery
• Recovery of Probate Assets only
• Only Amount of Home Over 50%
of Average Value of Homes in the
County is Subject to Recovery

5. Planning to Avoid Estate Recovery
• Joint Ownership
• Beneficiary Designations
• Ladybird Deeds
• Assets in Trust

6. Exemptions for Probate Assets
1. A Medicaid recipient's spouse.
2. A Medicaid recipient's child who is
less than 21 years old.
3. A Medicaid recipient's child
who is blind or permanently disabled.

7. Exemptions for Probate Assets
4. A survivor who lived in the home and
provided care that allowed the Medicaid
recipient to remain in their home for at
least two years immediately prior to the
Medicaid recipient's admission into a
medical facility.
5. A Medicaid recipient's sibling who has an
equity interest in the home and who lived
in the home for at least one year
immediately prior to the Medicaid
recipient's admission into a medical facility.

8. Undue Hardships Exists
• Can apply for Hardship Waiver if:
• The estate is the sole source of income for
the survivors, such as a family farm or
business; or
• The estate is a home of modest value; or
• A survivor would become or remain
eligible for Medicaid if recovery occurred.

9. Dark Clouds on the Horizon
• Senator Kahn Bill
• SB 404
• Expands the scope of recoverable assets
• Advocacy opportunity –> Contact your
Senator and Representative

10. Presented by:
HOWARD H. COLLENS
GALLOWAY AND COLLENS, PLLC
26075 WOODWARD AVENUE
SUITE 200
HUNTINGTON WOODS, MICHIGAN 48070
(248) 545-2500
GALLOWAYCOLLENS.COM
@howardcollens
Disclaimer
The content of this handout and the accompanying presentation are for informational purposes only. The
information presented does not create an attorney-client relationship and is not intended to provide legal advice. As
the law is constantly evolving and each case is fact specific, you should contact a qualified attorney to review and
analyze the facts and law as they relate to your individual circumstance.