What steps should a personal representative take if Medicaid Estate Recovery omits estate real property from its satisfaction of claim?

1. Detailed Answer

When the North Carolina Medicaid Estate Recovery Program issues a satisfaction of claim but omits estate real property, the personal representative must act promptly. Federal law (42 U.S.C. §1396p(b)) and North Carolina law (see N.C.G.S. §108A-70.7) require the State to pursue recovery from a deceased Medicaid recipient’s estate. If real property is left unlisted in the written satisfaction, follow these steps:

1. Review the satisfaction document. Obtain the written satisfaction of claim from the Medicaid agency. Compare its description of estate assets to the inventory you filed under N.C.G.S. §28A-14-1. Note any omitted real property.
2. Contact the Medicaid Estate Recovery Unit. Notify the recovery unit in writing of the omission. Submit copies of your decedent’s probate inventory or deed to show ownership. Request an amended satisfaction of claim or a revised lien release.
3. Document your communications. Keep copies of letters, emails and any responses. Record dates and names of agency personnel.
4. File exceptions to the satisfaction. If the agency will not correct the omission, file exceptions in the probate file under N.C.G.S. §28A-18-2. Ask the clerk of superior court to schedule a hearing on your exception.
5. Request a judicial determination. At the hearing, present your evidence of ownership and the satisfaction’s omission. Ask the court to order the Medicaid agency to amend its satisfaction or to remove any cloud on title.
6. Clear title before sale or distribution. Do not sell or distribute omitted real estate until the court resolves the matter. Otherwise, you could face personal liability for unpaid recovery liens.

By following these steps, you protect the estate from unexpected liens and ensure property passes to rightful heirs free of Medicaid claims.

2. Key Takeaways

• Compare the Medicaid satisfaction of claim with your probate inventory immediately.
• Communicate in writing with the Medicaid Estate Recovery Unit and provide supporting documents.
• Keep detailed records of all correspondence and responses.
• File exceptions under N.C.G.S. §28A-18-2 to dispute omissions.
• Obtain a court order to clear any cloud on title before closing or distributing real property.

Contact Pierce Law Group

Handling omissions in Medicaid Estate Recovery claims demands swift, knowledgeable action. Pierce Law Group’s probate team understands how to navigate recovery liens and protect estate assets. Reach out today to discuss your case. Email us at intake@piercelaw.com or call (919) 341-7055. Let us guide you through every step of probate administration and ensure your estate remains secure.