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Medicaid and estate recovery

On Behalf of | Sep 8, 2022 | Estate Planning |

There are a variety of factors that you need to take into consideration when creating an estate plan, and the smartest approach to estate planning depends on your unique circumstances. There are various types of estate plans, and you should carefully go over your options. You should also plan ahead and look into various issues that could impact your estate and your loved ones, such as the way in which you will distribute assets and the possibility of estate taxes.

Furthermore, you should look into Medicaid and estate recovery if you received long-term care services as a TennCare recipient.

An overview of estate recovery in Tennessee

TennCare, Tennessee’s Medicaid program, provides helpful information on estate recovery. After the death of a Medicaid recipient who received long-term care services through this program, including community-based services and nursing home care, TennCare will collect money from the recipient’s estate to make up for services they received.

Federal law requires TennCare to pursue estate recovery, and recovery only takes place following a recipient’s death. It is important to note that family members do not have any responsibility for these debts.

Estate recovery exemptions and deferment

Sometimes, TennCare defers estate recovery. For example, the estates of those who leave behind a spouse or a child under 21 are not subject to estate recovery. In addition, estates that satisfy undue hardship criteria can avoid estate recovery as well.

If you have received long-term care services through TennCare, it is vital to take estate recovery into consideration and understand how this could affect your assets following your death.