SPRING 2010
ESTATE RECOVERY UPDATE
Dear Colleague:
As I reported in an earlier newsletter, Michigan's Estate Recovery law was passed in September of 2007. "Estate Recovery" would allow the State to make a claim against the home of a person who was receiving long-term care Medicaid benefits. This law, however, required that the Federal government approve Michigan's plan before it could be implemented. Michigan submitted their plan for approval and it was not approved.
What this means is that while Michigan has an estate recovery law, we still do not have an estate recovery program. There is no requirement to notify the State upon the death of the person who was receiving long-term care Medicaid benefits. There also is no mechanism through which the State would be able to collect these costs. At this time, it is unclear when this will become an effective "estate recovery" in Michigan.
It is important for potential Medicaid applicants and long term care clients to address and plan for the long term care of a loved one. As the laws continue to change, I would recommend they meet with someone knowledgeable of these changes.
Smith Bovill, P.C. counsels clients on elder law and Medicaid planning issues regularly as part of its estate planning, probate, and trust administration practice. This letter, as well as all prior letters, are posted on our website at http://www.smithbovill.com/. Please check our website for any updates to this newsletter and additional information regarding elder law. This letter, and the information on our website, is intended for informational purposes only. As a result of the constantly changing laws in the Medicaid area, the information provided may change. We would be pleased to discuss this, or any other Medicaid or elder law issues, in more detail.
SHARON A. BURGESS
SMITH BOVILL, P.C.
