If MERP finds an asset of real property (only worth $3,000) during their investigation after a NH residents death, and it is within the 60 month look back period, would they impose a penalty on the resident? or the family? The resident would be dead....would they then penalize the family? I saw in the MERP handbook that they don't require family members to pay, only the resident's estate....I know I'm not wording this right, as I can't remember the exact wording in the handbook right now. Also, does anyone know what specific questions MERP asks on the questionnaire sent with the NOI upon death of NH resident?
Now when mom dies, it becomes an asset of her estate and as such is nonexempt. Tx has outsourced estate recovery (MERP) to HMS. HMS regional is in Dallas /Irving area & it's the regional for TX and other states MERP as well. From my perspective in dealing with them, they approach things very systematically & constant much like debt collection agencies. From my not an atty. viewpoint, their letters are highly "legalese" & skew to the view that $ is owed & case closed.They get a % of the recovery as well a contact fees by the states. About 1/3 of states use HMS for MERP. Whomever is on file with tx DADS for contact for your mom will get the NOI and the questionnaire. It will ask for bank balance, life insurance info, property owned, heirs, copy of will, etc & you have a strict timeframe to respond. It states that they have no reason not to find recovery cost effective, here is the amount owned (you can roughly figure this one as Tx pays abt $ 155 a day room & board rate to the NH) and if payment not received interest & fees can be accrued.
HMS will not mention the TAC rule you posted, nor any mention of TAC Rule 373.213 - which is the deductions for property expenses & costs of care (prior to NH so like you paid for a caregiver for a few mos/weeks before she moved into Shady Acres). If you have been paying anything on the property - taxes, insurance, utilities, yard work - its mucho importante to keep records & receipts in detail to clearly establish things pertinent to 373.213. Plus keep all tax assessor statements to again clearly establish value below the federally mandated cost benefit analysis threshold.
Oh also there's a yes OR no ? on if you have opened probate & asks for the PC #.. Now mind you this questionnaire goes out maybe 8-10 weeks after death and most families aren't thinking probate PLUS Tx allows for 4 years to open probate.
To me the ? is what do you (& any heirs) want to do about the property?
It will have costs which must be dealt with by you (or heirs) both now while mom is alive and then after death when you are dealing with MERP and property sale or transfer. Like paying property taxes so it doesnt go to tax sale or keeping yard up so no blight /code issues. So can you pay all costs till whenever and is it worth doing (for whatever reasons you have)? If you get all costs done and present to MERP & get the release of the claim from MERP, do you have the time & money to do a small estates affadavit or muniment of title needed to get the property sold or transferred? It's like you have to do your own cost benefit analysis.....
So 12k to 3k! Wow! So was this due to the whole shale fracking boom?
No Medicaid estate recovery claim will be filed if it is not cost effective. A claim will not be cost-effective if:
(1) the value of the recoverable estate is $10,000 or less
would that apply to the $3,000 lot? After her death, that is....
Coco, Is your ? about dealing with Medicaid for someone still alive but there was something left out on medicaid application.....OR is your ? that they have died and you are trying to figure out how to deal with selling or transferring "real" property that is worth 3k and an asset of the estate of the deceased? 3k is pretty low value real property asset....is this raw land?.... or land with a pretty worthless house or building on land? .......or is it O&G/mineral real property? What type of "real property" will make a difference in how to deal with this imho. So what is it? and
How did you determine value is 3k?
In states that have filial responsibility laws, the courts uphold the right to collect from whoever got the property in question.