Detailed Answer
When you handle probate in North Carolina, you must determine whether the decedent received Medicaid benefits for long-term care or other covered medical services. Medicaid is a state-federal program administered through your local county department of social services. Under North Carolina law, the county department may file a claim against the estate to recover the cost of benefits paid on behalf of the decedent.
Specifically, N.C. Gen. Stat. § 108A-70 requires the personal representative to mail a copy of the notice of estate administration to the county department of social services within 30 days of appointment. After that notice, the department has six months to file a claim for reimbursement of medical assistance provided for institutional care. The claim works like any other creditor claim against the estate. You must settle valid claims—either by paying the department or obtaining a written release—before distributing assets to beneficiaries. Failure to address a Medicaid claim before closing the estate exposes the personal representative to two key risks:
- Personal liability for any distributions made in violation of the department’s statutory claim.
- Delays in closing probate due to unresolved creditor claims.
By checking for Medicaid eligibility and potential reimbursement claims early, your probate attorney ensures that the estate complies with North Carolina’s probate and Medicaid statutes, protects beneficiaries, and avoids unnecessary delays or personal liability.
Key statutes to review:
- N.C. Gen. Stat. § 108A-70 – Claim against estate for medical assistance.
- N.C. Gen. Stat. Chapter 28A – North Carolina Probate Code.
Checklist: Steps for Reviewing Medicaid Eligibility Before Closing an Estate
- Obtain a complete record of all Medicaid benefits the decedent received.
- Mail a copy of the notice of estate administration to the county department of social services by certified mail within 30 days of appointment.
- Allow the department six months to file any claim under N.C. Gen. Stat. § 108A-70.
- Review any claims for accuracy and verify the amount owed.
- Set aside sufficient funds in the estate to satisfy valid Medicaid liens.
- Obtain a written release of Medicaid claims or proof of payment before distributing assets.
- Complete the final accounting and distribute remaining assets to heirs once all claims and debts are resolved.
If you need help navigating Medicaid issues in probate, reach out to the attorneys at Pierce Law Group. We guide personal representatives through every step of estate administration. Email us at intake@piercelaw.com or call (919) 341-7055 to schedule a consultation.
