I am the executor of my parent's estates. Both passed away last year. All of their bank accounts and debts have been taken care of some time ago as both parents were on Medicaid. I sold their house and received a check for the proceeds at closing. The proceeds are to be split equally between my sister and I. Seems silly to have to open a new account just to disperse the funds but of course I want to handle this the correct way. I live in the state of Georgia and my sister lives in Canada. Total proceeds is around $90,000. What do I need to do? PS: my understanding is that this inheritance would be tax free - maybe someone can clarify that too. Thanks!
Or... you couldn't endorse the check, could you? Might be worth asking, though it's possible that modern young bank tellers won't have the faintest idea what you're talking about.
The usual system - based on posts on this site -for HMS seems to be that as the states Medicaid contactor HMS is sent by the state the recently deceased Medicaid file, so within it is details on the deceased assets such as a home and status on life insurance policy. Then HMS sends out a NOI (notice of intent) to get information from surviving spouse &/or heirs to determine if a claim or lien was to be done OR it could be that since there was a surviving spouse known by Medicaid that recovery was suspended till surviving spouse died (I’m guessing it has been done this way). Then after that 2nd death a NOI should have gone out by the outside contractor for MERP- HMS- again to determine if a claim or a lien action was to happen & was to be placed. Any idea if this happened? If death #2 was recent, the NOI could be on its way. Based on others posts, it could take 3 mos to a year to get NOI.
They died with assets (house) & debts (Medicaid tally,funeral & court costs, etc). They actually did have debts. Whomever did medicaid applications or renewals should have been aware of MERP as the recoup requirement is within these. Medicaid is required to attempt to file a lien or claim for recovery of monies spent by the state for any Medicaid applications filed after GA sign off on 2005 federal DRA. And NOI is needed to responded to by whomever was contact person on file for them for Medicaid or whomever to be executor of estate, so that determination can be done as to Recovery status. There are exemptions & exclusions to MERP as well as state laws that factor into if a Recovery done. NOI is kinda the first step in all this. Was NOI received & responded to?
For dealing with the estate, did you get a probate atty to open probate and do a Notice to Creditors so assets / debts dealt with via traditional probate process so there’s judges orders / sign off on the sale of the asset; OR did you on your own do some type of affidavit, or muniment of title?
How was the sale of the house done?
Like MLS type of Realtor listing sold with a Warranty Deed?
Or FSBO or some type other private sale, with a Quit Claim Deed?
Did buyer get title insurance?
The check is it written out to the estate?
I have zero personal experience with Medicaid, but from reading entries on this site, it seems there may be a possibility that the state medicaid system may seek restitution from the sale of the house.
From what you describe, there would be no federal taxes on this sum. If your folks lived in Georgia too, there is no inheritance tax for Georgia. Typically, the employees in the surrogate's court are quite helpful. You might check with them.