Question:

I am 55, live in New Jersey and received Medicaid. I have a 14-year-old child living with me. I own a house. If one day I pass away, will the state seek estate recovery for the money I used on doctor visits, prescription drugs, hospitals? How can I avoid the state to file a claim against upon my death?

Response:

Yes. Fifty-five is the magic age. The state can seek recovery of its expenses paid out for your medical care after age 55. In many states, the way to avoid this is to make sure the house avoids probate. You could transfer the house to a revocable trust that provides for you during your life, and which continues for your child after you have passed away.

One caveat, however. This works in most states, but not necessarily in all states. You would have to consult with a local elder law or special needs planning attorney in New Jersey to make sure this strategy works there. You’ll need an attorney to draw up the trust in any case. Here are a couple of websites for finding qualified attorneys for this task:

www.elderlawanswers.com

www.specialneedsanswers.com

You might also contact your senators and congresspeople to advocate for the elimination of Medicaid estate recovery nationwide. Representative Jan Schakowsky (D-IL) has introduced “The Stop Unfair Medicaid Recoveries Act” to repeal it. Her bill is supported by California Advocates for Nursing Home Reform, Justice in Aging, the National Academy of Elder Law Attorneys, the National Health Law Program, Consumer Voice for Quality Long-Term Care, and the Western Center on Law & Poverty. You can learn more about this effort here.

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