Medicaid estate recovery in New York

Medicaid estate recovery in New York

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Does New York offer Medicaid estate recovery?  There is a recovery plan for the New York Medicaid services. For the best Medicaid services you will need to have a Medicaid planning attorney who will be able to ensure that you are covered and avoiding the risks due.  This system is subject to fraud and the Medicaid attorney will help you with Medicaid fraud investigations in such events.

What to expect from Medicaid estate planning in New York.

 Medical fraud penalties are also imposed to Medicaid fraud events. Federal law spells out that the state has to attempt and recover long-term benefits that are given by the Medicaid recipient’s estate after a person dies. The Medicaid benefits specifically the long-term care benefit, should be applied for once the applicant understands that the steps aren’t taken to protect the house or home. In most cases the house is required to be sold so as to settle the claim caused by the Medicaid once an individual pass away. In most cases the recovery is made for people with the age of fifty-five year and above in the state of New York. Medicaid cannot recover for anyone below the age of fifty five unless in very special cases. Individuals with the age above fifty five should seek their recovery from the nursing homes. They can also do this from the community-based services and prescription drug services. The recovery not only includes long-term care benefits but also cost for any medical care required.

One of the exceptions for the recovery is when the Medicaid recovery has a spouse. In New York the recipient of the Medicaid has to have no spouse so as to gain the recovery. If they have a spouse that means that once they pass away the spouse will not obtain the recovery. The state can however file to get the recovery once the second spouse dies. The state claims the seconds spouse estates so as to recover the Medicaid. The other exception is when the Medicaid recipient has a child under the age of twenty one years. If the recipient also had a kid that is disabled surviving at the time of death then the state does not gain the recovery.

In New York the law state that the term estate is used to mean all the real and personal property. This includes the assets that are passed under the term of a valid last will. This means that if the will is missing by the time the recipient of the Medicaid passes away. When this happens the surrogate court must start the proceedings to transfer the property to the estate the property however has to be held in the name of the recipient alone by the time of them passing away.

The state has an option of seeking the recovery against property which the beneficiary had an interest but it passes outside of validation or an estate management proceeding. This what the term expand estate recovery refers to. This includes any joint assets, living trust assets and life estates. In New York the state revoked the expand estate recovery. This means it doesn’t allow recovery against assets that were held mutually. The belongings have to be held jointly with the right of transferring to the living trust or in which the recipient retained the life estate.

For one to be a Medicaid receiver, the only asset they have to own is their home. They also have to own less than fifteen thousand nine hundred dollars. At the time of their death the only asset they need to own is their home as the state refers to this as exempt resource and not count towards Medicaid suitability. The state may not make a claim against the home if it is not in the recipient probate or intestate is highly advisable that the home is protected before applying for the Medicaid benefits.  One of the ways of protecting the home is by transferring the house or home to a trust right before applying for the Medicaid benefits. The applicant can also chose to transfer the home to a Medicaid asset protection trust if they don’t have a trust to leave the house to and intern the group will create a transfer penalty protecting the home from the state. Some children may also have the opportunity to protect the home if they succeed for the undue hardship example is if a son was taking care of the mother before entering the nursing home and they don’t have any other place to reside.

 When a lien is placed on the property and it is sold while the Medicaid recipient is still alive then the applicant can lose the aid. This is because it is argued that the money from the sale is sufficient. The applicant may also be forced to pay the coverage from when they started getting covered to the date, they sell the house.


  • New York Estate recovery is when Medicaid tries to recover the amount it paid for your care from your probate estate.
  • Probate assets which Medicaid tries to recover are assets held in your name and that which don’t pass by operation of law or through a beneficiary designation.
  • For one to qualify to be a Medicaid receiver, the only asset they have to have is their home. They also have to own less than fifteen thousand nine hundred dollars.

DISCLAIMER: The information provided in this blog is for informational purposes only and should not be considered legal advice. The content of this blog may not reflect the most current legal developments. No attorney-client relationship is formed by reading this blog or contacting Morgan Legal Group.

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