Written by Brandon Thomson

A Question, Often Asked

Here at The Probate ProSM, we are often asked this question: “If a loved one receives Medicaid benefits, will the State of Michigan take their home?”  The answer …  it depends. The State of Michigan may recover property from estates of certain deceased Medicaid beneficiaries who have received benefits under the Michigan Estate Recovery Program.

If the beneficiary was 55 years of age or older, has received long-term care services anytime after or on September 30, 2007, and has an estate, the State may recover the property. An estate includes all property and other assets that pass from a deceased beneficiary to his/her heirs through a probate proceeding.

How to Avoid Estate Recovery

An estate recovery claim cannot be asserted against property that passes outside of probate, by trust, or otherwise. Meaning, the recovery only applies to probate assets. At The Probate ProSM, we typically urge our clients to avoid having any of their assets pass through the probate administration process.

This means planning and passing their property outside of probate. Some common strategies that we advise our clients to effectuate are the use of a “Lady Bird Deed” or a Revocable Living Trust. Both strategies will avoid Michigan Estate Recovery and ensure that the home is passed to a loved one, rather than the State.

To learn more about Estate Recovery, Medicaid rules, and related strategies, reach out to one of our Probate Pros. We’re ready to help you out in your time of need. Give The Probate ProSM a call at 1-(877)-YOUR-FIRM.