Short Answer

In North Carolina, you request a Medicaid estate recovery hardship deferral directly from the N.C. Department of Health and Human Services (DHHS) after you receive their recovery notice. You typically must ask in writing within the deadline stated in the notice (here, 60 days) and prove you live in the home and that recovery would create an undue hardship. While DHHS reviews your request, coordinate the estate steps needed to clear title and give proper creditor notice without opening a full probate, if possible.

Understanding the Problem

North Carolina: You, the adult child, want to protect your late father’s home from Medicaid estate recovery. You need to apply for a residency hardship deferral and handle title so you can stay in the home. The key trigger is a 60-day window in DHHS’s notice to request the deferral. One salient fact: you moved back into the home five months before death and are the only person living there now.

Apply the Law

North Carolina allows the State to recover certain Medicaid costs from a decedent’s estate, including real estate, but DHHS may defer or waive recovery if it would cause an undue hardship to certain heirs who live in the home. Real property generally passes to heirs at death, subject to the estate’s debts and the personal representative’s powers. The hardship deferral is requested from DHHS (administrative), while any creditor notice and limited estate actions occur with the Clerk of Superior Court.

Key Requirements

• Medicaid claim exists: DHHS asserts an estate recovery claim against the decedent’s estate, which can reach the residence.
• Timely hardship request: The resident heir asks DHHS in writing for a hardship deferral within the deadline stated in the DHHS notice (here, 60 days).
• Proof of residency and hardship: Show principal residence status and that recovery would create undue hardship; agree to maintain taxes/insurance and not transfer the property while deferred.
• Coordinate estate steps: Provide creditor notice (including to DHHS) and handle title without full probate when possible (e.g., limited personal representative for notice to creditors, or probate without qualification if needed for title).
• Transfers within two years: Any sale/transfer by heirs within two years requires careful compliance with creditor notice rules to be valid against creditors.

What the Statutes Say

• North Carolina Gen. Stat. § 108A-70.5 (Medicaid Estate Recovery) – Authorizes estate recovery and allows DHHS to administer hardship policies.
• North Carolina Gen. Stat. § 28A-14-1 (Notice to creditors) – Sets out publication and mailing of creditor notice by or through an authorized representative.
• North Carolina Gen. Stat. § 28A-29-1 (Limited personal representative) – Allows appointment to give creditor notice without full administration.
• North Carolina Gen. Stat. § 28A-17-12 (Sales by heirs within two years) – Restricts transfers by heirs within two years unless creditor notice is given and, in some cases, the representative joins.

Analysis

Apply the Rule to the Facts: DHHS has a valid estate recovery claim against your father’s estate that can reach the home. Because you reside in the home and it is the only significant asset, you can request a hardship deferral from DHHS within the 60-day window in their notice. To keep title marketable and protect the deferral, have a limited personal representative appointed to publish and mail creditor notice (including DHHS). With siblings willing to deed their interests, handle any deed after creditor notice is in place and consistent with two‑year transfer rules.

Process & Timing

1. Who files: The resident heir or the estate’s representative. Where: North Carolina DHHS, Estate Recovery Unit. What: Written “hardship deferral” request with proof of residence, income/asset information, and a commitment to maintain taxes/insurance. When: Within 60 days of the DHHS estate recovery notice (or the deadline stated in that notice).
2. Coordinate estate steps: In the county of domicile, ask the Clerk of Superior Court to appoint a limited personal representative to issue creditor notice without full probate. Publish the notice and mail it to DHHS as a known creditor. Allow the statutory claim period to run; county publication practices and timelines can vary.
3. Finalize title: If there is a will affecting real estate, file it for probate (you may be able to probate without qualification). If intestate, confirm heirs and have siblings sign and record a deed to you. Complete any DHHS deferral agreement conditions and keep the property insured, taxed, and as your principal residence.

Exceptions & Pitfalls

• Missing the DHHS deadline can forfeit the hardship option; act as soon as the notice arrives.
• Failing to mail creditor notice to DHHS (a known creditor) can leave the claim open even after publication.
• Transferring or mortgaging the home within two years of death without proper creditor notice or representative participation can be void as to creditors.
• Moving out, renting the home, or failing to pay taxes/insurance can terminate a deferral and restart recovery.
• If no one addresses the claim, DHHS can seek appointment of an administrator to sell property to pay the claim.

Talk to a Probate Attorney

If you’re dealing with a Medicaid estate recovery claim against a North Carolina home and need a hardship deferral, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at .

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.