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Thank you everyone. I feel confident there will be no bills due as mom has no assets, no home, no Life Insurance, no anything worth anything but her precious soul. We keep the account below $1,000 at all times which is seriously easy - and so even cash won't present a problem. Sure makes life easier when there's not all the assets to worry about. Thank you!
I live in Michigan and dealt with this after my dad's death. The state will attempt to seize property in order to reimburse the Medicaid program for expenses incurred for your loved one's care. This includes their home or real estate they own. However - if there is a surviving spouse, caregiver or child that has been living in the home for over 2 years prior to the loved one's death, the state will exempt the home from their collection activity. You will receive letters from the state immediately upon their death asking to provide proof of residence at the home if you are trying to exempt the home from collection.
The best way to avoid the house being pursued as a recoverable asset is to set up a Ladybird Deed immediately (prior to your loved one's death) - this sets up the home to go directly to a named individual in the deed upon your loved one's death, and keeps it out of the hands of probate or the state.
CroweM- this seems to depend on the states program. Like TX Medicaid, has a list of community based programs that get included in the subject to MERP tally. Not just NH. And for anything within that list paid by Medicaid once over age 55 and after a set day in 2005 (or 2006 - this fun little tidbit depends on when your state did their DRA compliance for MERP) For those who have had lots of medical issues even before going into a NH, the $ amount could be staggeringly high.
What is likely to happen is the state - or better yet the states outside contractor for MERP - will send a "Intent to file a Claim Letter" to whomever is the contact person for elder. If your state does an annual renewal for Medicaid, then it goes to that person on file.
Within the letter, it will state something as to how MERP runs under your state law & that state is required to do a collection. Like for MERP TX letters, it states as "allowed in a Class 7 probate claim". There could be a separate sheet with an "invoice " with whatever Medicaid paid. The $ amount may want you to have a stiff drink too. Read letter to see exactly what you need to do next. Maybe going on-line to download a form & fill out to show assets or lack of assets. Or perhaps the form is attached to the "intent to file". Whatever the case, there will be paperwork done & filed to moms MERP #.
If mom has no assets, then case closed. Some states have a form that is a "Release of MERP claim" - if your states does one, it is an important document to keep along with death certificate.
I will suggest that you want to do whatever to ensure that: - if mom has a bank account, it's done POD to you. So upon her death, you can go & close (or have it become the estate of account if need be) - moms personal needs account at the NH is spent down on a regular basis. This $ is a probatable asset, if you find that probate is needed. - if mom has a life insurance policy, just double check who the beneficiary is. If mom has gone through Medicaid application, it probably has a person ( you or a grandchild) as the beneficiary, so no issue for probate. But it could possibly have her estate as the beneficiary & this little factoid got overlooked by Medicaid. If so, then the insurance payout becomes a probatable asset for her estate.
The way the MERP letter reads (at least for TX MERP) is very much like a demand letter from a debt collector. It is not a warm & fuzzy condolence card.
Not from you, no. But if Mom has assets (unlikely, if she is on Medicaid) the state could seek reimbursement from those after her death. The typical asset this is applied to is a house. You mention that Mom is renting so I doubt this applies to her at all.
Last I checked, Michigan did not have "filial responsibility" laws on the books. That means they do not expect children to pay support for parents. Now if and when mom passes, Medicaid MERP will file a claim against mom's estate. For example they could put a lien against her house or bank accounts. In your case, she does not appear to have assets to come after. Just be sure you do not sign any hospital or nursing home forms agreeing to be responsible for her bills.
By proceeding, I agree that I understand the following disclosures:
I. How We Work in Washington.
Based on your preferences, we provide you with information about one or more of our contracted senior living providers ("Participating Communities") and provide your Senior Living Care Information to Participating Communities. The Participating Communities may contact you directly regarding their services.
APFM does not endorse or recommend any provider. It is your sole responsibility to select the appropriate care for yourself or your loved one. We work with both you and the Participating Communities in your search. We do not permit our Advisors to have an ownership interest in Participating Communities.
II. How We Are Paid.
We do not charge you any fee – we are paid by the Participating Communities. Some Participating Communities pay us a percentage of the first month's standard rate for the rent and care services you select. We invoice these fees after the senior moves in.
III. When We Tour.
APFM tours certain Participating Communities in Washington (typically more in metropolitan areas than in rural areas.) During the 12 month period prior to December 31, 2017, we toured 86.2% of Participating Communities with capacity for 20 or more residents.
IV. No Obligation or Commitment.
You have no obligation to use or to continue to use our services. Because you pay no fee to us, you will never need to ask for a refund.
V. Complaints.
Please contact our Family Feedback Line at (866) 584-7340 or ConsumerFeedback@aplaceformom.com to report any complaint. Consumers have many avenues to address a dispute with any referral service company, including the right to file a complaint with the Attorney General's office at: Consumer Protection Division, 800 5th Avenue, Ste. 2000, Seattle, 98104 or 800-551-4636.
VI. No Waiver of Your Rights.
APFM does not (and may not) require or even ask consumers seeking senior housing or care services in Washington State to sign waivers of liability for losses of personal property or injury or to sign waivers of any rights established under law.
I agree that:
A.
I authorize A Place For Mom ("APFM") to collect certain personal and contact detail information, as well as relevant health care information about me or from me about the senior family member or relative I am assisting ("Senior Living Care Information").
B.
APFM may provide information to me electronically. My electronic signature on agreements and documents has the same effect as if I signed them in ink.
C.
APFM may send all communications to me electronically via e-mail or by access to an APFM web site.
D.
If I want a paper copy, I can print a copy of the Disclosures or download the Disclosures for my records.
E.
This E-Sign Acknowledgement and Authorization applies to these Disclosures and all future Disclosures related to APFM's services, unless I revoke my authorization. You may revoke this authorization in writing at any time (except where we have already disclosed information before receiving your revocation.) This authorization will expire after one year.
F.
You consent to APFM's reaching out to you using a phone system than can auto-dial numbers (we miss rotary phones, too!), but this consent is not required to use our service.
The best way to avoid the house being pursued as a recoverable asset is to set up a Ladybird Deed immediately (prior to your loved one's death) - this sets up the home to go directly to a named individual in the deed upon your loved one's death, and keeps it out of the hands of probate or the state.
Not just NH. And for anything within that list paid by Medicaid once over age 55 and after a set day in 2005 (or 2006 - this fun little tidbit depends on when your state did their DRA compliance for MERP) For those who have had lots of medical issues even before going into a NH, the $ amount could be staggeringly high.
Within the letter, it will state something as to how MERP runs under your state law & that state is required to do a collection. Like for MERP TX letters, it states as "allowed in a Class 7 probate claim". There could be a separate sheet with an "invoice " with whatever Medicaid paid. The $ amount may want you to have a stiff drink too. Read letter to see exactly what you need to do next. Maybe going on-line to download a form & fill out to show assets or lack of assets. Or perhaps the form is attached to the "intent to file". Whatever the case, there will be paperwork done & filed to moms MERP #.
If mom has no assets, then case closed. Some states have a form that is a "Release of MERP claim" - if your states does one, it is an important document to keep along with death certificate.
I will suggest that you want to do whatever to ensure that:
- if mom has a bank account, it's done POD to you. So upon her death, you can go & close (or have it become the estate of account if need be)
- moms personal needs account at the NH is spent down on a regular basis. This $ is a probatable asset, if you find that probate is needed.
- if mom has a life insurance policy, just double check who the beneficiary is. If mom has gone through Medicaid application, it probably has a person ( you or a grandchild) as the beneficiary, so no issue for probate. But it could possibly have her estate as the beneficiary & this little factoid got overlooked by Medicaid. If so, then the insurance payout becomes a probatable asset for her estate.
The way the MERP letter reads (at least for TX MERP) is very much like a demand letter from a debt collector. It is not a warm & fuzzy condolence card.
Now if and when mom passes, Medicaid MERP will file a claim against mom's estate. For example they could put a lien against her house or bank accounts. In your case, she does not appear to have assets to come after.
Just be sure you do not sign any hospital or nursing home forms agreeing to be responsible for her bills.
https://www.agingcare.com/articles/medicaid-repayment-of-nursing-home-estate-recovery-150497.htm