Unknown Medicaid Rule: Estate Property is Received on Parent’s Day of Death

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Some people mistakenly believe that an applicant for Louisiana Long Term Care Medicaid does not own property that belonged to their parents when the parents’ Successions have not been completed.

Here’s an example: Grandparents owned a piece of real estate. Grandparents died many years ago leaving two children, a son and a daughter. Either the grandparents’ Wills, or intestate law (you pick) leaves the property to the two children, equally. The grandparents’ successions were never completed leaving title to the property in grandparents’ names.

Grandparents’ daughter is now requiring nursing home care and is applying for Louisiana Long Term Care Medicaid. As part of the application process, it is discovered that Grandparents’ daughter is entitled to inherit one-half of the property. Medicaid rejects the daughter’s Medicaid application based on the Medicaid Manual’s Estate definition, which provides:

“Count the applicant/enrollee’s share of an undivided estate as a resource the first day of the month following receipt. Receipt is deemed to be the day of death in the case of a direct descendant or when there is an uncontested will designating the individual as beneficiary.”

Medicaid correctly assets that even though the Successions had not been started or completed, one-half of the property is a countable resource, pushing daughter’s countable resources far in excess of the $2,000 statutory limit. The Medicaid application is denied. If the daughter is going to stay in the nursing home, somebody will need to pay the nursing home the applicable $6-7,000 monthly amount.

Because receipt of the property is deemed the date of death, it behooves families to, pro-actively and promptly complete the Successions of their ascendants, so that planning can be done in advance of a nursing home stay in order to protect family property.

This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.

Paul Rabalais
Louisiana Estate Planning Attorney
Phone: (225) 329-2450


jacki jura says:

Good job Paul. Always nice to hear those who can take the complex and make it sound simple. cheers, jaxx LL.M. (taxation) Maui

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