Medicaid Estate Recovery

A large percentage of older adults in Georgia will likely need some form of long-term care after the age of 65. While nobody wants to think about the possibility of having to stay in a nursing home, or to move into a nursing home on a permanent basis, nearly 50 percent of adults aged 65 and older need some type of long-term care according to the US Department of Health and Human Services (HHS), and about one-fourth of those older adults need nursing home care for two years or longer. Given the high costs of nursing home care cited by the Georgia Attorney General’s Consumer Protection Division, most older adults will want to consider Medicaid planning well before they need long-term care in order to avoid having to spend down savings they have protected over a lifetime.

Certain assets are exempt, including the older adult’s home as long as they are residing in it and plan to return. Other related assets are also exempt, which means an older adult can qualify for Medicaid while keeping various types of property. However, it is critical to know that Medicaid can attempt to recover the costs it paid from a person’s estate after they die. This is known as Medicaid Estate Recovery, and our Gwinnett County estate planning lawyers can tell you more.

Understanding Georgia’s Medicaid Estate Recovery Program 

What is Georgia’s Medicaid Estate Recovery Program? In short, when a person dies after receiving Medicaid coverage for long-term care, this program enables the estate to recover money from that deceased person’s estate to cover the costs spent on their long-term care. As Georgia Medicaid defines it, the program is one that is “required by federal law, whereby Medicaid members with qualified assets reimburse the taxpayers for long-term care and home and community-based services provided through Medicaid.”

Estates that have a gross value of $25,000 or less are exempt from any Medicaid Estate Recovery claim. Otherwise, under Georgia law, the only significant exception for heirs — those who would inherit the deceased’s assets — is that they may be eligible to receive a “hardship waiver” if they can show by clear and convincing evidence (a high evidentiary standard to meet) that an Estate Recovery action would “subject them to undue hardship.”

Preventing a Medicaid Estate Recovery Claim 

How can you ensure that your loved ones can properly inherit your assets after you die, rather than those assets ultimately being recovered by Medicaid?

You may be able to set up one or more irrevocable trusts that can protect your assets from Medicaid while you need long-term care (allowing you to be eligible), and protecting your assets for your heirs. A lawyer can discuss setting up a trust as part of the important tasks of Medicaid planning and estate planning in Georgia.

Contact a Norcross Estate Planning Attorney 

Do you have questions about Medicaid planning or the Medicaid Estate Recovery Program in Georgia and how it could impact your estate? It is important to discuss your situation with an experienced Norcross estate planning lawyer at Bowman Law Firm who can answer your questions and help you to plan ahead. We know how important it is to ensure that you are able to receive the care you need while still being able to leave assets to your children and other loved ones. Contact us today to discuss Medicaid planning and estate planning in more detail.

Sources:

rules.sos.ga.gov/gac/111-3-8

consumer.georgia.gov/long-term-care

aspe.hhs.gov/reports/what-lifetime-risk-needing-receiving-long-term-services-supports-0