Estate Recovery: What It Is and How It Works in Michigan

Описание: In this Warner Medicaid Moments vlog, attorney Catherine Jacobs explains the concept of estate recovery and how the State of Michigan may seek repayment for long-term care Medicaid benefits after a recipient’s death.

Estate recovery is a program that allows the state to recoup funds it paid on behalf of an individual who qualified for long-term care Medicaid benefits. Importantly, Michigan can only recover against probate estate assets — meaning assets that must go through the probate court process in order to transfer after death.

Catherine breaks down what qualifies as a probate asset by walking through common ways property is transferred. Assets held jointly, accounts with beneficiary or transfer-on-death designations and assets held in trust often pass automatically to the intended recipient and may avoid probate entirely.

However, if a Medicaid recipient dies owning assets solely in their name — such as a home with no joint owner or beneficiary designation — those assets may need to go through probate. In those cases, the state may assert an estate recovery claim against the probate estate before heirs receive any remaining proceeds.

To help families plan ahead, Catherine shares how proper estate planning and asset alignment can reduce the risk of estate recovery, including strategies like beneficiary designations and Lady Bird deeds.

Watch the video to better understand how Michigan’s estate recovery process works and what proactive planning steps may help protect your assets. Stay tuned for more Warner Medicaid Moments vlogs.