My friend’s mother died. Can she stop Medicaid from taking the family home?
“She has contacted the mortgage company, but they will not discuss the mortgage.”
Medicaid's role in estate recovery can be complex and often comes as a surprise to families dealing with the loss of a loved one. When a Medicaid recipient passes away, the state may seek to recover costs from the estate, which can include the family home. This process is governed by federal and state laws, and it varies by state.
In this case, the friend's mother having passed away, and Medicaid's potential claim on the family home, is likely causing significant concern. The fact that the mortgage company won't discuss the mortgage with her suggests that there may be some uncertainty around the home's status and who has authority to make decisions about it. Typically, the estate's personal representative or executor would handle such matters, but if there isn't one, or if there's confusion, it can lead to difficulties.
To watch next: The friend should seek guidance from an attorney specializing in elder law or estate planning, who can help navigate Medicaid's estate recovery process and advise on protecting the family home. Additionally, contacting the state's Medicaid office or a local social services department may provide more information on the specific procedures and potential exemptions or waivers available.
Originally reported by marketwatch.com. CurrencyNews adds analysis for finance & markets readers.