Detailed Answer
When a Delaware resident aged 55 or older receives Medicaid for long-term care, the state can seek to recover costs from their estate after death. Inherited property is a common target. Below are the core steps involved in a Delaware Medicaid estate recovery claim:
1. Identification of Medicaid Benefits and Estate Interests
The Delaware Division of Medicaid and Medical Assistance (DMMA) tracks all recipients who receive long-term care services. It reviews public records to identify any property interests owned at the time of death. Federal law authorizes this process under 42 U.S.C. § 1396p(b)(1).
2. Issuance of Notice of Claim
After verifying benefits paid, DMMA issues a Notice of Claim to the decedent’s personal representative or heirs. This notice outlines the amount owed and the basis for recovery. It must comply with Delaware’s notice requirements for creditors in probate. See Del. Code tit. 12, § 1302 (Creditor’s Notice in Probate Proceedings).
3. Probate Administration
The estate enters probate under Delaware’s Probate Code (Title 12). Heirs or the personal representative file a petition, and the court appoints a personal representative. During this process, all creditors—including the DMMA—file their claims.
4. Filing a Claim in Probate Court
DMMA files its claim for the Medicaid expenses as a creditor under Del. Code tit. 12, § 1301 (Presentation of Claims). The claim must be filed within the deadline (generally within 3 months of the first publication of notice to creditors).
5. Valuation and Liquidation of Inherited Property
The personal representative obtains appraisals for real property or other assets. They may sell the property or negotiate a settlement. Funds from the sale are used to satisfy the DMMA claim in the same order as other creditors.
6. Payment and Release of Lien
Once the estate pays the claim, DMMA issues a release of any liens filed against the property. This clears title for the heirs.
7. Appeals and Hardship Waivers
Heirs may dispute the claim by filing objections in probate court within the statutory deadline (see Del. Code tit. 12, § 1302). For financial hardship, heirs can request a waiver under federal law (42 U.S.C. § 1396p(b)(3)(B)) and Delaware regulations (31 Del. Admin. C. § 1103).
Disclaimer: This article is for educational purposes only and does not constitute legal advice. You should consult a qualified attorney to address your specific situation.
Helpful Hints
- Keep copies of all Medicaid benefit statements and notices.
- Retain professional appraisals for real property to avoid disputes.
- Monitor probate deadlines closely to preserve your rights.
- Consider negotiating with DMMA if sale of property imposes undue hardship.
- Seek probate or elder-law counsel early to streamline the process.