My mom passed away two months ago. She received Medicaid/Medicare Hospice Care. Of course two weeks passed and Medicaid Estate Recovery inquired about her only asset, her house. However, the house was Quit Deeded to me. My mother had only one credit card in her name only which I paid out of my pocket just to keep her credit in good standing. I was told by my attorney not to pay her bills if I'm not a joint holder. Two weeks after I closed the account I received a letter from a major collection agency inquiring about her assets. She had two life insurance policies which I am the beneficiary. Should I cash in the policies and submit payment? I don't know.
As to paying her past due bills from your own money? The answer to that is a definite no. YOU don't owe it. She does.
I'm sorry for your loss -- and then, when we have these kinds of problems? It only makes it that much harder.
Medicaid was probably never informed of the Life Insurance or they would have made her cash that in and spend it down. You need a good lawyer, NOW.
What company wants payment for debt? When was the house deeded over to you? If the house was deeded to you within 5 years of Medicaid application, then MERP may have a claim on your house unless it is exempt for some valid reason. You won't be responsible for your mother's outstanding debts, such as credit accounts. However, MERP is something you will have to deal with.