Short Answer

In North Carolina, to request an undue hardship waiver of Medicaid estate recovery based on long-term occupancy, you must prove the home was your primary residence and that recovery would cause serious financial hardship. Produce clear documents showing continuous residence (for example, driver’s license, voter registration, tax returns, utility bills) and financial need (income, expenses, and inability to secure comparable housing). The North Carolina Department of Health and Human Services (DHHS) decides these waivers, and deadlines in the DHHS notice are strict.

Understanding the Problem

You want to know what proof is needed, under North Carolina probate rules, to show long-term residency in a decedent’s home when asking DHHS to waive or defer Medicaid’s estate recovery. The focus is narrow: can you, as an heir now living in the home, document continuous residence and financial hardship to support an undue hardship waiver? One key fact here is that your siblings plan to deed their interests to you, and the home is the only asset while you hope to avoid formal probate.

Apply the Law

North Carolina’s Medicaid estate recovery program can seek repayment from estate assets, including real estate. An undue hardship waiver is a DHHS process, not a court ruling. For a long-term occupancy waiver, DHHS looks for credible proof that the property is (and has been) your primary residence and that forcing a sale would create substantial financial hardship. In estate administration, Medicaid is treated as a creditor; the Clerk of Superior Court manages estate procedure, but DHHS decides waivers. A notice to creditors and claim deadlines can affect timing.

Key Requirements

• Primary residence proof: Show the home is and has been your main home for a sustained period (continuous occupancy).
• Objective documents: Provide consistent records tying you to the address over time (e.g., ID, voter registration, tax returns, insurance, utility bills).
• Financial hardship: Demonstrate that recovery would cause loss of housing or similar hardship (income, expenses, assets, ability to find comparable housing).
• Estate posture: Acknowledge outstanding creditor rights; Medicaid recovery is treated as a claim against the estate.
• Timeliness: File the waiver request by the deadline stated in DHHS’s recovery notice and respond promptly to any follow-up.

What the Statutes Say

• North Carolina Gen. Stat. § 108A-70.5 (Medicaid estate recovery) – Establishes Medicaid estate recovery and allows hardship relief.
• North Carolina Gen. Stat. § 28A-19-6 (Priority of claims) – Sets the order for paying estate claims, including Medicaid recovery.
• North Carolina Gen. Stat. § 28A-14-1 (Notice to creditors) – Requires publishing and mailing notice to known creditors.
• North Carolina Gen. Stat. § 28A-17-12 (Transfers within two years) – Limits effect of heirs’ deeds within two years as to creditors if no proper notice.

Analysis

Apply the Rule to the Facts: Your best case requires two showings: long-term primary residence and financial hardship. Collect and submit a timeline of occupancy supported by driver’s license or state ID address, voter registration, multiple years of tax returns, utility statements, homeowners insurance, and homestead/real property tax records. Add pay stubs, benefit statements, bank records, and a brief budget showing you cannot afford comparable housing if the home must be sold. Deeds from siblings can clarify your interest but will not defeat DHHS’s claim on their own.

Process & Timing

1. Who files: The occupying heir or the estate’s personal representative. Where: North Carolina DHHS (Estate Recovery Unit). What: A written hardship waiver request with residency and financial documents; use the waiver request instructions provided in the DHHS notice. When: File by the deadline in DHHS’s letter (often short; treat it as urgent).
2. If no personal representative has been appointed but creditor issues exist, consider opening an estate or limited administration to manage claims and mail the required creditor notice to DHHS. File in the Clerk of Superior Court in the county of domicile using the appropriate Application for Probate and Letters (AOC-E-201) or Application for Letters of Administration (AOC-E-202), then publish notice and mail notice to DHHS as a known creditor. DHHS typically reviews hardship materials in weeks to a few months.
3. DHHS issues a written decision (waiver, deferral, or denial). If approved, keep the decision with the estate file and property records. If denied, follow the appeal instructions in the decision letter by the stated deadline.

Exceptions & Pitfalls

• Solely recording deeds from siblings does not cut off Medicaid; within two years of death, heir transfers can be ineffective against creditors if no proper creditor notice is given.
• Gaps in residency proof (e.g., mismatched addresses, recent move-in) weaken long-term occupancy claims; use multiple consistent records spanning years.
• Thin financial documentation leads to denials; include tax returns, income/benefit statements, housing costs, and a short explanation of why comparable housing is not feasible.
• If the estate ignores DHHS’s claim, DHHS can ask the court to appoint an administrator to sell property to satisfy recovery.
• Send waiver materials and creditor notices by trackable mail; keep copies of everything you submit.

Talk to a Probate Attorney

If you’re dealing with a Medicaid estate recovery claim against a family home and need to prove long-term residency for a hardship waiver, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

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.