Estate Recovery

There are many questions about how the value of your assets might affect your eligibility for Medicaid.  Many people that we talk to feel that because they have an expensive home, they may not qualify for Medicaid, but this isn’t always true.  You might be surprised to discover that you can still qualify for Medicaid even if you have an expensive home (Valued up to $500,000).  This is because of the estate recovery laws in Arkansas.

What is Estate Recovery and how does that affect my Medicaid benefits in Arkansas?

To put it simply, when a Medicaid applicant dies, the state of Arkansas will go to that person’s estate and say “We’ve spent money on this person, and we went to get some of that money back.”  That expensive house is how the state will recover that money.  As the house goes through probate and gets sold, any proceeds go to the state first, and then proceeds will go to the family next.

Can I protect my house from going through estate recovery in my will?

Regardless of what your will says, the state of Arkansas is still first in line to recover proceeds from the estate.

Are there any exemptions or exceptions to estate recovery laws in Arkansas?

There are a few exemptions to estate recovery laws.  In these cases, the state would not receive proceeds from the estate as it goes through probate.  These exceptions are as follows

• If the will designates the house to a disabled child

• If the house is the only asset of the beneficiary

• If the deceased has children under the age of 21

• If the home is still occupied by the deceased’s spouse

• If there is a child who lived in the home for at least two years prior to parent’s death, and that child living there prevented the parent from going to a nursing home