Find Senior Care (City or Zip)
Join Now Log In
A
anonymous891278 Asked March 2019

Is personal debt recognized prior to North Carolina Medicaid Estate Recovery?

When my ex-wife passed away, she left her estate to our daughter from a Special Needs Trust. Medicaid Estate Recovery Program wants to recover all liquid assets from the inheritance (no home involved). Our divorce decree stated that she owed me a sum of money and contribution to our daughter's college expenses which she never paid. If I make a claim against the estate, would this be paid before Medicaid recovery?

worriedinCali Mar 2019
You need a lawyer versed in NC law because it appears in your state, Medicaid reimbursement takes a back seat to debt and judgements. If the divorce decree is considered a judgement, then it takes priority over Medicaid estate recovery. But again you need a lawyer.
JoAnn29 Mar 2019
Interesting? Wondered about this with owing back taxes on Moms house and owing Medicaid too. Are county taxes more important than Medicaid?
JoAnn29 Mar 2019
I think this is a question for the lawyer who drew up the Trust.

When I applied for Medicaid, I was told the will was null and void. (Later told this was not completely correct) Meaning, that Medicaid had a right to recover before beneficiaries received any inheritance. (Not completely correct, I found out, because there r provisions for disabled children and others who may have lived with a person, but we won't go into that.)

I am a Trustee to my nephews SNT. To get this Trust nephew had to go before a judge with paperwork showing his disability. This was done to protect my late sisters life insurance that nephew was beneficiary of. Social Services suggested this so he could apply for SS and Medicaid.

Just an opinion, but if wife was on Medicaid of any kind, Medicaid should have been reimbursed and money left would go to SNT.

In my opinion, you have a divorce decree. It may not trump Medicaid but it may trump the SNT. Because you have 3 different things going on here, the lawyer who set up the trust maybe able to answer these questions. My nephews was pretty much versed in SS and medicaid law.

ADVERTISEMENT


Isthisrealyreal Mar 2019
Probably not, call your state Medicaid and ask them.
anonymous891278 Mar 2019
Unfortunately, my daughter and I both live in South Carolina. My ex-wife lived in North Carolina where the trust was created. I meet with my attorney on Wednesday. Might make sense for him to contact the attorney that wrote the Trust in North Carolina.

ADVERTISEMENT

Ask a Question

Subscribe to
Our Newsletter