What is a Medicaid Lien?
When an individual receives benefits through Medicaid, a Medicaid lien may be placed on their home at some point if they still own a primary residence. While the home is exempt when it comes to their ability to qualify, it can be subject to a lien upon their death. Medicaid is an important joint federal and state benefit program that is legally complex, and if you have concerns related to your home and a Medicaid lien, working closely with an experienced Pennsylvania estate planning attorney is advised.
Medicaid
Medicaid is a federal and state-run program for individuals and families with limited resources and low incomes. Medicaid not only covers long-term care for those who need it and qualify, but is also the primary payer for long-term care across the nation.
Long-Term Care
When someone who is a Medicaid recipient goes into long-term care but owns a residence, the asset generally makes the recipient ineligible for benefits under most circumstances. If, however, the recipient applies for benefits with what is called an intent to return home, the application can be processed, and benefits can begin in spite of the asset. When this happens, however, Pennsylvania’s Department of Human Services is very likely to place a lien on the house at the time of Medicaid approval.
Upon Returning Home
If the Medicaid recipient ultimately returns home, the Medicaid lien will be lifted, and the home will remain the individual’s asset. If, however, the Medicaid recipient dies over the course of their stay in the long-term care facility, the Medicaid lien will remain in place, Medicaid will become a creditor of the estate, and the lien must be paid off before any beneficiaries can inherit the property.
Lien Removal Strategies
If you’re a beneficiary of a loved one whose home has a Medicaid lien on it, there are strategies you can apply in order to keep the home, including:
- It may be possible to defer payment of the lien if the only way you can pay it in full is by selling the property.
- If you can demonstrate your lack of financial liquidity, you may be able to set up a payment schedule.
- You could also mortgage the property in order to keep it in the family.
Every situation involving a Medicaid lien is unique to the circumstances involved, and you shouldn’t proceed without the skilled legal guidance of a trusted estate planning attorney.
An Experienced Pennsylvania Estate Planning Attorney Can Help
Medicaid liens are complicated financial matters in the context of your inheritance, but the focused estate planning attorneys at Mette Attorneys at Law appreciate the significance of the matter in your life and are well prepared to fiercely advocate for a favorable resolution to your legal concern. We are on your side and here to help, so please reach out and contact us online or call us at 717-231-5219 for more information about what we can do to help you today.