Texas Probate and Medicaid Estate Recovery
Texas Medicaid may recover the cost of long-term care from a deceased recipient’s probate estate. Executors must notify MERP and manage claims. Planning ahead with trusts, TOD deeds, and beneficiary designations can reduce the risk of recovery.
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At Integrity Estate Consultants, we pride ourselves on being the premier estate management and closure firm locally. Our expertise lies in assisting families daily, helping them navigate the complexities of their probate proceedings alongside their attorneys. Our goal is to help families return to normalcy by enabling administrators to close their estates as swiftly and cost-effectively as possible. We streamline the entire process, allowing administrators to focus on work, family, and other important matters, confident that their estate is being handled by a team of professionals.
Our knowledge is vast and far-reaching. We have helped hundreds of families and plan to assist thousands more by 2035. From the most complex estates to the simplest and even the downright messiest, we’ve seen it all and know our stuff.
Introduction
Texas Probate and Medicaid Estate Recovery
The Medicaid Estate Recovery Program (MERP) in Texas can significantly impact probate and inheritance. If a deceased individual received Medicaid benefits, the state may seek reimbursement from their estate during probate. Understanding how this works is crucial for executors and heirs trying to protect estate assets.
What Is Medicaid Estate Recovery?
Texas participates in MERP under federal law. When a person aged 55 or older receives Medicaid long-term care services, the state may file a claim to recover the cost of those services after the recipient’s death. Recovery typically occurs through probate proceedings.
For official guidance, visit the Texas Health and Human Services MERP page.
When MERP Applies
MERP applies if the deceased:
- Was 55 or older when they received Medicaid;
- Received long-term services such as nursing home care, home health, or community-based services;
- Left assets subject to probate.
When MERP Does Not Apply
Texas does not pursue MERP claims if:
- The deceased is survived by a spouse;
- There is a surviving child under 21;
- The estate includes a child of any age who is blind or permanently disabled;
- Recovery would cause an undue hardship (must be requested).
F.A.Q
Yes, if the home passes through probate and no exemptions apply, the state may place a claim on it.
It’s a formal request to forgive or reduce recovery due to financial hardship of heirs. Documentation must be submitted.
Some transfers may be allowed, but improper transfers could violate Medicaid eligibility rules. Seek legal advice before making transfers.
Common Probate Assets Targeted by MERP
MERP can target any asset that passes through probate, including:
- Real estate (especially homesteads);
- Vehicles;
- Bank accounts in the decedent’s name only.
Assets held in trust or with beneficiary designations typically avoid probate and MERP claims.
The Executor’s Role
Executors are responsible for:
- Notifying MERP of the decedent’s death by submitting Form 8001;
- Waiting to distribute assets until claims are resolved;
- Responding to MERP’s Notice of Intent to File a Claim.
Strategies to Limit MERP Impact
1. Pre-Planning
- Set up Transfer on Death (TOD) deeds for real estate.
- Designate beneficiaries on bank accounts and investments.
- Use revocable living trusts to avoid probate.
2. Post-Death
- Apply for a MERP hardship waiver if applicable.
- Provide documentation quickly to limit claim amounts.
- Consult a probate attorney experienced in Medicaid recovery.
MERP and the Homestead
In Texas, the homestead is often the most valuable probate asset. While it’s protected during the Medicaid recipient’s lifetime, it becomes vulnerable during probate unless exempted or protected via planning tools like a TOD deed.
Conclusion
Texas Medicaid Estate Recovery can complicate probate, especially when real estate and other valuable assets are involved. Understanding the rules, notifying the proper agencies, and planning ahead with estate tools can help minimize or avoid claims. Executors should act carefully and consult legal counsel when MERP claims are involved.
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DISCLAIMER
Integrity Estate Consultants, LLC asserts that we are not a licensed lawyer, and this article is intended solely for providing general guidance and information from our collaborative experience, and should not be considered as legal advice or a substitute for consulting with a qualified attorney. For any specific legal grievances related to personal probate cases, we strongly advise individuals to seek professional legal counsel and engage the services of a licensed attorney.