Medicaid and the family house
Did a parent receive Medicaid? Here's what it means for the house.
New Jersey can seek repayment from a person's estate for Medicaid benefits they received after age 55. For many families, the house is the main asset. Medicaid's claim doesn't usually stop a sale; it changes how the money is divided at closing.
How it works in New Jersey
What Medicaid estate recovery is.
New Jersey's Medicaid program, run by the Division of Medical Assistance and Health Services, can file a claim against the estate of someone who received Medicaid benefits at age 55 or older, for the cost of those benefits.
Recovery is generally put off while there's a surviving spouse, a surviving child under 21, or a surviving child who is blind or permanently disabled. Hardship waivers also exist. New Jersey uses a broad definition of 'estate,' so in some cases its claim can reach property that passed outside probate.
When the house is sold, Medicaid's claim is typically resolved through the estate before the heirs receive their shares. The title company will want it addressed before closing.
What it means for your family
Practical points.
The house can usually still be sold
The claim is paid from the estate, often from the sale proceeds. It doesn't usually block the sale itself.
Know the number early
Medicaid's claim amount affects what the heirs receive. It's best to know it before agreeing on anything.
Timing matters
Taxes, insurance and upkeep keep adding up while the house sits, which reduces what's left after Medicaid's claim.
We've seen it before
We guide families through it, connect you with an experienced estate attorney we trust, and can cover the probate costs when you sell to us.
How we help
Private, patient and organized.
One person, start to finish
You deal with one person at Gembrook from the first call to closing, and we explain each step in plain language.
The right estate attorney
We connect your family with an experienced New Jersey estate attorney we trust, who represents the estate, and we coordinate the rest.
Costs covered
When your family sells the property to us, we can cover the probate costs, including the attorney's fees, as part of our purchase.
Each heir, privately
We speak with each heir on their own, so no one has to negotiate as a group.
Common questions
Can New Jersey Medicaid take my parent's house after they die?
New Jersey can file a claim against the estate for Medicaid benefits received at age 55 or older. The claim is usually paid from the estate, often from the sale of the house, before the heirs receive their shares.
When does Medicaid not seek recovery right away?
Recovery is generally deferred while there's a surviving spouse, a surviving child under 21, or a surviving child who is blind or permanently disabled. Hardship waivers may also be available.
Can we still sell the house if there's a Medicaid claim?
Usually yes. The claim is typically paid at or after closing as part of settling the estate.
Does Medicaid's claim only apply to the probate estate?
Not always. New Jersey uses a broad definition of 'estate,' so in some cases the claim can reach property that passed outside probate.
Who can help us figure out the claim?
We can guide you and connect you with an experienced New Jersey estate attorney we trust, who represents the estate.
General information only, not legal or tax advice. Every estate is different. We can guide you and connect you with an experienced New Jersey estate attorney we trust.
Keep reading
Related answers.
Probate costs covered → · Liens & judgments → · Creditor claims: nine months →
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