What is Estate Recovery?

• Estate Recovery is a program that the State of Michigan can use to obtain reimbursement for expenses it paid for the medical and nursing home care of Medicaid recipients.

From what assets can the state seek reimbursement?

• “Estate” is the key word in Michigan’s estate recovery program.  The state can only seek reimbursement from a person’s PROBATE ESTATE.  Therefore, estate planning that avoids the probate process will also avoid estate recovery. 
1. Examples include:  Trusts, Beneficiary Designations, Transfer on Death Accounts, Joint Ownership, Life Estates and Transfer of Death Deed

Which Medicaid recipients are subject to estate recovery?

• People who began receiving Medicaid assistance for nursing home care after September 30, 2007 are included 

What about my home?

• The state can only seek reimbursement from a portion of your home’s value.
1. 50% of the average price of a home in your county is exempt.
2. Your home might be exempt from estate recovery if certain people live in your home
• Michigan CANNOT PLACE LIENS on homes and can only seek reimbursement if your home goes through the probate process.

Is any other property exempt?

• Property that is the primary source of income for survivors, for example, the family farm.

Is there any way I can make sure my family inherits my property, even if I need Medicaid services?

• YES, estate recovery is easy and inexpensive to avoid.  Estate planning done by attorneys familiar with Medicaid and estate recovery can help you plan to avoid probate and, therefore, avoid estate recovery.
1. Transfer on Death Deeds will be the main tool used to protect homes from estate recovery