After a 5.5-year stay in a nursing home due to a severe injury, my mother passed away last year. Prior to going into long-term care, my mother's husband left her, stating it was too much for him to deal with. He sold the house and split the proceeds with her, thinking she would move in with me. I was unable to care for her due to having to work and not having qualified long-term in-home care options. She entered the nursing home as private pay, and after several months of paying, we were instructed by the nursing home to do a spend down of her money so that she could qualify for Medicaid. They even encouraged us to consider buying her a car since it is an allowable asset, and we would be using it to transport her to various appointments and for short-term family visits.
When she passed away, the only assets she held were a small bank account with right at $2,000 in it and this 2019 SUV. When I had the oil changed in it last week, I was informed that the tech noticed it was leaking oil and that they wanted $240 to complete a diagnostic review. I scheduled a time to have it completed, only to get home to a "Request for Release" letter in the mailbox. The only questions this asked were her name, my name, and address, information about the probate court case, which we do not need or have, a box for a request to waive or delay recovery of claim, and information about Trust, again which she did not have.
My question is, will they attempt to either take the car or make me sell it and send them the money? Until I know what to expect, I'm not fixing the vehicle. Also, while researching this, I am now aware just enough to know that there is this "thing" called a small estate, and in my state, a "small estate" is one in which the total value of the personal property of the estate is $50,000 or less. Since I am confident that this vehicle is well under the small estate threshold, my question is, are small estates excluded from estate recovery? What should I expect?
Just fill out the recovery info. That 2k in her acct is hers and Medicaid cannot take it. That is part of her estate. But u may need to prove thats all she has in the bank. If the car was in the Medicaid application, you need to claim it now as an asset. Ask Moms medicaid caseworker what you need to do to prove the value of the car. A dealer maybe able to give you a market value in writing, less the leak.
Just fill out and send back. My Mom had a house, I got a second letter saying a lien was placed on it. I am sure you will get a second letter telling you what you need to do concerning the car. You can always buy it outright or sell it.
Don't over think this. Its pretty cut and dry. Take a copy of the form after filling it out and send it certified mail. No need to register it for a signature. You will get a receipt from the PO with a tracking# on it so you will have when it was delivered.
However, since there is no estate, you should probably do what Alva said, and maybe it will not be worth it for them to pursue it. When my mother's BF died, her attorney advised her to send a copy of the death certificate to bill collectors with a letter saying "Mr. ... was left without means."
Then wait and see what they say.
If however, this car was listed as her asset, and you bought it for less than full market value which you then gave to her and she spent down, then this is still her asset. They MAY come after you but I think it doubtful. I agree you should not put money into this car until you know.
Consider consulting an attorney who may assist you (probate attorney specifically) for almost free if this is your question. As with all things legal, you don't need our opinion; you need expert advice for your own state laws.
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