Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
In California, the Medi-Cal Estate Recovery Program can file a claim against a deceased beneficiary’s probate estate to recover benefits paid on or after the individual turned 55. This includes real property such as inherited homes. California law, Welf. & Inst. Code § 14009.5, provides a hardship waiver process that may protect inherited property from recovery.
Under Welf. & Inst. Code § 14009.5(b), the Department of Health Care Services (DHCS) must waive recovery if it would cause undue hardship. Undue hardship can arise if:
- Enforcement would deprive heirs or survivors of basic needs (food, shelter, health care).
- The cost to preserve or liquidate the estate equals or exceeds its value.
- A surviving spouse or registered domestic partner still lives in the home.
- A child under age 21, blind, or permanently disabled resides in the home.
To apply for a hardship waiver:
- Obtain the waiver request form. Contact your county’s Medi-Cal estate recovery unit or DHCS via DHCS Estate Recovery to request the “Hardship Waiver Request” form.
- Gather supporting documents. Include a certified death certificate, probate court filings (Letters Testamentary or Letters of Administration), an inventory of estate assets, proof of family relationships (marriage or birth certificates), and a statement of household income and expenses.
- Complete the form fully. Explain in writing how recovery would cause undue hardship under one or more statutory grounds. Attach all evidence.
- Submit on time. File the request within 180 days of the notice of estate recovery. Some counties impose shorter deadlines—confirm with your county office.
- Await DHCS review. DHCS has up to 90 days to decide. They may request additional proof; respond promptly to avoid delay.
- Review the decision. If DHCS grants the waiver, your property avoids recovery. If denied, you may request an administrative hearing with your county or seek a writ in superior court.
Helpful Hints
- Act promptly when you receive an estate recovery notice to preserve your right to a waiver.
- Keep copies of every document you submit and record dates you file forms.
- Work closely with the probate court or a public guardian if appointed to administer the estate.
- Consult a probate or elder-law attorney if the hardship criteria are complex or disputed.
- Check your county’s Medi-Cal website for local procedures and contact information.