MERP claims on grandma's property. Am I to inherit?

OH WOW!! When someone is trying to take care of and help a loved one that is their concern. However, there are legal process' to address this. Perhaps that is where the saying "money is root of all evil" came from?
Also your post nudged me to contact our attorney to clarify how things work again so we both can have peace of mind that what we intended is indeed what we intended. Thank you for nudging me to do what we need to do.

Sorry, but I am not up to speed on the Medical Expense Reimbursement Plan, commonly known as MERP. Suggest contacting an attorney.

Couple of ?'s, so how was the "hardship" done...did either aunt or your mom get a merp NOI (notice of intent) questionnaire and got it by providing the info needed for hardship? If so, within the questionnaire there should be a place to indicate claims or debts against the estate which taxes paid would be. Most states administrative codes allow for taxes, maintenance, etc on an empty property to be deducted from the medicaid tally. But the state needs to become aware of these. So was this done?

If not there are 2 ways to approach this imo.....this is a pretty tiny merp claim at 16k! I'd first try to contact via certified mail with documentation to whomever does MERP for your state (could be state agency or outside contractor like HMS or PCG) that $ paid on the property for taxes, insurance, maintenance, etc. are claims against the estate (attach the tax assessor statement for year grannie died as it shows this is low value property if probate is done & the 50% hardship determination which lowers the properties MERP recoverable value) and the $ 10,958.21 to be deducted from grannies MERP claim and with determination done within 30 or 60 days otherwise probate will be opened. Yiu send this same certified mail again 30 dats later. I'd mail it certified with the return regstered receipt fir eac mailing. Thecdue will run under $ 9.00 at USPO. This is something you can do yourself, certified mail. I'd try this first and see what response you get. If taxes get deducted, personally I'd just send another certified mail saying you will pay the approx. 6k difference (16k -10k = 6k) IF and only IF MERP will provide a release of claim against the property. Then you take the Release, file at courthouse and deal with transferring property however your state does small estates affadavit or maybe a muniment of title assuming your mom & aunt as the heirs sign off on all this.

If state or outside contractor won't budge, then IMO you are going to need to open probate and all your costs are entered as a claim as a part of probate. Whomever is named executor as per Gran's valid will deals with claims as per Grans state probate laws and administrative codes & under advice of probate atty. Probate could run a year or years...... Now there will be costs to go probate, at least 3 -5k for atty plus costs to establish value of estate (I'm sure you'd like to avoid this so that why the DIY above suggested) & securecassets till probate distribution final. But if MERP won't work with you, then Hello Probate! Everbody then deals with assets & claims as per probate rules. You enter your 10k as 2 claims (pre & post death). Whomever is executor also has executor claims done as well. MERP - either by your state agency or it's outside contractor - can enter its own claim against the estate as well & has to to be considered by the court. Most states have claims done to allow for a system for priority claims and dealt with first. Like for TX, it's a Level of Claim by class state with MERP as a class 7 claim. All executor costs, funeral costs, and costs to secure assets of the estate (like paying taxes, insurance, etc) are class 1-3 claims for TX. So merp recovery rates via probate process is somewhat lower due to this for TX if the State even files a class 7 Claim to probate court to begin with. If your state is such that all probate claims are equal, it's going to be different. Comprende?

If MERP will accept your paying the difference & provide a release, its going to be a simpler & sooner process to get property into your name IMHO. Property Taxes in most areas are due end of January, so think about how this affects the situation.

Also MERP has cost-effective constraints that the estate has to have a value of at least 3k or a recoverable value of over 10k. Based on what you wrote the property recoverable is right over the 10k......but 1 more tax payment will be under 10k. Good luck and get organized to get this dealt with!

I'm sorry for your loss and your present difficulties. People do not know about this estate recovery law of Medicaid because they don't tell anybody and it's hard to find information on it. It is mandatory that all States enforce that law if a person is 55 years old or older and on Medicaid and not restricted to nursing homes. That's ANY Medicaid usage. When a person passes away everything goes into probate including the estate. Unless you are named as co-owner of the property on the deed the house will go into probate. If you are co-owner on the property deed then it won't go into probate. However, liens won't go away but they can't take the house as long as there is a co-owner still living there.

When your mother dies, the Executor pays claims in a specific order. MERP is at the top of the list. You have no legal claim. Glad you paid this for your grandmother and mother, though.

No. First in time, first in line

The lien was in place, then you started to pay those taxes.

Your lien would come next. THEN, the remainder is divided by 2.

So..43,780 less 16,340 ( rounded to make this easier). Leaves $27,440
Then subtract your lien of 11,000. Leaves. 16,440
Each then get half...$8,220

The other way that might be calculated is to take all of it from you Moms half only, which would mean...$22,000 less 50% of MERP 8,000 is 14,000 after your taxes are paid back..Mom gets $3,000. This seems unfair...aunt should also have to pay half of the taxes.

However...you will have to sue and win the judgement...then you can put that as a lien on the property. Do not count on your Mom and aunt to pay that back to you without the judgement to collect in the closing.