Medicaid may file a claim against your home to recover what it paid for your care after your death. This process is called Medicaid estate recovery, and it can put your estate at risk. Many families do not learn about this until it is too late to protect the property.
Medicaid estate recovery affects more than just your house. The state can also pursue other assets that passed through your estate. An elder law attorney may be able to help you protect your home and what you have worked for.
Our Medicaid lawyers in Woodstock have been serving Georgia families and helping them through complicated legal issues for more than a decade. Call today and schedule your Legacy Planning Meeting to start protecting your assets.
Does Medicaid Have to Be Paid Back After Death?
Medicaid is required by federal law to seek repayment from your estate after you die. The state files a claim for the cost of long-term care services it paid on your behalf. This includes nursing home care, home and community-based services, and related medical expenses.
The Georgia Department of Community Health manages the estate recovery program. It sends a notice to your estate after your death. Your estate must respond, or the claim moves forward automatically.
Recovery applies to individuals aged 55 or older who received long-term care services, as well as individuals of any age who resided permanently in a nursing facility or medical institution.
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What Can Medicaid Recover in Georgia?Recovery is not limited to the probate estate. Georgia uses a broad definition of an estate, which means some assets that pass outside the probate process may still be subject to Medicaid recovery claims.
However, Georgia will not pursue Medicaid estate recovery if the total value of your estate is $25,000 or less at the time of your death. This exception exists because the cost of pursuing a small estate often outweighs what the state would recover.
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When Can Georgia Take Your House to Pay for Nursing Home Care?
Georgia can place a claim against your home if Medicaid paid for your nursing home care. The state does not seize the home while you are alive. The claim attaches after your death when your estate is settled.
Your home is an exempt asset while you are living in it or intend to return to it. A spouse living in the home also protects it during your lifetime. Georgia law strictly delays all recovery after your death if you are survived by a spouse, a child under 21, or a disabled child of any age, even if they do not live in the home.
If those family protections do not apply, the state may require the sale of the home to satisfy the claim. This can leave unprotected heirs with little or nothing from the property. A smart asset protection plan is the most effective way to prevent this from happening.
What Happens if There Is a Surviving Spouse?
If your spouse is still living when you die, Georgia Medicaid cannot pursue estate recovery at that time. The claim is deferred until after your spouse also passes away. This gives your spouse the right to remain in the home without immediate risk.
After your spouse passes away, the state might make a claim to recover funds from the combined estate. This could put your home at risk for future heirs. Planning for the care needs of both spouses can help protect the family home in the long run.
Married couples have additional planning tools available to them. Spousal protection rules under Medicaid law allow one spouse to retain more assets while the other qualifies for benefits. Our legal team can help you understand how these rules may apply to your specific situation.
How Can You Protect Your Home From Medicaid Recovery?
The most effective way to protect your home is to plan well before you need long-term care. Georgia has a five-year look-back period for Medicaid eligibility. Transfers made within that window can result in a penalty period that delays your benefits.
One common strategy is placing your home in trust, such as our Absolute Protection Trust™. This removes the home from your probate estate. The state cannot recover from assets that are no longer part of your estate after you die.
Other strategies include adding a Transfer-on-Death Deed or restructuring ownership. Our elder law attorneys can help you choose the right approach for your family.
Get Help Protecting Your Home and Assets
If Medicaid paid for your long-term care, the state may seek repayment through Georgia’s Estate Recovery Program, which can place your home at risk after your death. This sometimes takes a family by surprise at one of the most difficult times in their lives.
You worked hard to build something for the people you love. Learning that the state may claim your home after death adds financial stress to an already painful situation. Our estate planning lawyers can help you find solutions.
Our team at Nelson Elder Care Law has helped hundreds of Georgia families understand their rights and plan to protect what matters most. Contact us today and set up your free Legacy Planning Meeting. The sooner you start planning, the more options you have.