Estate Recovery and Liens

Under federal Medicaid law, the state must attempt to recoup the amounts it paid for a person under the Medicaid program.  This generally means that there would be a lien put on the Medicaid recipient’s house (because that is one of the few assets the person has in his name and can still receive Medicaid).  However, there is no effort to “take” assets by the government until the recipient is dead.  Even then, no recovery can take place if the recipient’s spouse, blind or disabled child are still living.  

The “estate recovery” program generally reaches into the Medicaid recipient’s probate estate.  However, states have the option to reach to non-probate assets (assets that the Medicaid recipient had an interest in prior to his death), which includes joint assets, life estates and assets in a revocable living trust.