TennCare will use estate recovery on TennCare payments for long-term care.
Long-term medical care is expensive – but where does the money come from?
This week I want to talk about TennCare Estate Recovery. Over the last few blog posts, we have gone over the benefits available to those who qualify medically and financially for TennCare Choices, Tennessee’s long-term care Medicaid program. We have also discussed how we can help our clients adjust their finances so that they can qualify. This week we want to discuss how TennCare recoups the cost of providing long-term care services.
TennCare rules can be confusing
A long time ago, my friend told me that her grandmother had to give away her house because she could not afford to pay for medical care and needed to qualify for Medicaid. This is really unfortunate! Her grandmother clearly didn’t understand the rules of Medicaid. Unfortunately, people like my friend’s grandmother get bad information about Medicaid, the services that are available, and the requirements to become eligible. I wish I could have told my friend’s Grandmother that she could have kept her house. This leads me to my main point…
TennCare will not take your house while you are living in it.
However, TennCare estate recovery allows TennCare to get reimbursed for any funds that they spent on behalf of someone after that person dies. In other words, the state will eventually try to get reimbursed for the money they spent on your long-term care.
According to current TennCare rules, a single person can own a house that is worth up to $603,000, or land with a house worth over $603,000, without any concern about being ineligible for TennCare due to their home. However, you will want to talk to your attorney and financial advisor about how you may be able to continue to pay the costs of maintaining a home if you are in skilled nursing care.
How and when does TennCare get reimbursed for your long-term care?
For most of us, TennCare is not going to take your home even if you are living in a facility. Concern about your real estate should arise if you were hoping to pass your real estate to your family when you die. While TennCare will not try to get repaid for their expenditures during your lifetime, they will seek reimbursement after you pass away.
For example…
Roberta has a home worth $250,000 and no other assets. She was in a skilled nursing facility for two years and received TennCare services for which they paid $125,000. After Roberta passes away, her estate will be expected to pay $125,000 back to TennCare before the family receives any money. Since there is a house worth $250,000, the family would be expected to sell that house and give half the proceeds to the state. This process is called estate recovery.
Work with a probate attorney to resolve an estate recovery claim.
Is there any way we can keep the house in the family?
Estate recovery is something that TennCare takes seriously, and will go to great lengths to make sure that they are properly reimbursed. However, they will not take your home while you are living in it.
I want to be clear: A loved one receiving TennCare benefits while alive does not mean that Tennessee will later attempt to collect the money from YOU. The debt is not yours. If you have a loved one who passes away while on TennCare, your probate attorney will work with you to resolve that estate recovery claim so that TennCare can get reimbursed for any funds they spent on behalf of the deceased.
You can find more information through the Estate Recovery division here.
If you have a family member that was on TennCare or needs to get on TennCare, contact us at 615-846-6201. We’re here to help!
In life, there are jobs we seek out and others that are given to us. Being named an Executor (or Personal Representative) of an estate is one of the most important jobs one can be asked to hold by another person. It means there is someone who trusts you fully and believes that you will manage their final wishes properly and without conflict.
That’s not to say the job is easy. Again, you were likely appointed to the role of Executor because your loved one felt you could handle any stress or difficult responsibilities that come with the job.
The good news, however, is that there are ways to prepare in advance so that your life as an Executor is easier when the time comes. Here are some suggestions a Middle Tennessee will lawyer would have you consider:
Have the hard conversations now. Meet with the person who is naming you as an executor of their estate and ask them to describe exactly how they wish their estate to be administered. Take notes and make sure you get all the details. Knowing the “why” behind the decisions in the will can help you navigate “gray area” choices if they arise.
Be organized. The job of an Executor consists of lots of paperwork, bureaucracy, and time maintaining the estate as it goes through the probate process. Set up a filing system, spreadsheets, and bins, so the Executor’s job does not infringe on your everyday life.
Get a lawyer. No matter the size of the estate, it is prudent for all involved parties to have a lawyer. At the minimum, have a consultation with an attorney to make sure there is not something you have overlooked. People often think they can do everything themselves only to be caught at the end by taxes or administrative issues.
Move quickly once the person passes away. Grief makes people act in unexpected ways, so it is imperative that after the person dies, you move quickly to locate the original final will and file the necessary paperwork with the courts to be recognized as the Executor. At this time, order up to 8-10 copies of the death certificate to save yourself time later. Another uncomfortable thing you will need to do is to secure the assets. All too often, grieving loved ones will go to the home and begin to take items they believe they should have. You will have to be the one who stops this.
Be upfront with the heirs of the estate. Make sure they all get a clear understanding of how estate administration works. The process is a slow one, which frequently frustrates family members who are grieving. By giving them an explanation or better yet, having a lawyer do it, they will hopefully have patience with you and avoid conflicts.
Know there will be conflicts. Grieving is an individual process, and you will take the brunt of most of that emotion. If money is involved in the administration, the speed at which money is inherited can be infuriating. Heirs becoming angry with you is even more of a probability if any perceived omissions or secret bombshells are in the will. Hopefully, if that is the case, you knew ahead of time and were prepared.
Heirloom distribution needs to be deliberate. Once the significant assets and personal items are named in the will, the hard part starts. Deciding who receives the personal items in the home can cause the most conflicts. There is no explanation for the small household items that might have importance to many family members. A sweatshirt, a picture frame, or a dish can hold deep memories that you might be unaware of. Creating an equitable system for if multiple people want an item will ensure this process is done deliberately.
These are only a few ways you can help yourself if you have been named an Executor. If you find yourself struggling with your duties or you have questions and need some advice, we are here to help. To have an appointment with our Middle Tennessee will lawyer, April, schedule an initial call with us today!
Privacy Policy Your privacy is important to Graceful Aging Legal Services, PLLC. Please read this privacy notice carefully as it contains important information on who we are, how and why we collect, store, use, and share personal information, your rights in...
