What I am about to tell you sounds like a scam. Frankly, I wish that it was. I debated writing about this here at all because it’s not fiction. But I couldn’t stand the thought of another family going through this and if I can save one person this pain, then it would have been worth it.
When my mom passed away earlier this year at the age of 93, she had no debt. She lived in her own home, but she did receive assistance from Medicaid. She had home healthcare workers and she received free supplies such as adult diapers. A week ago, we received a letter from Medicaid asking for repayment of almost $400,000 from her estate. Well, if she had that kind of money, she wouldn’t have qualified for Medicaid. In lieu of payment, the government plans to place a lien on her home. The house isn’t worth even half that.
From research, I found that this is actually a method of recovery in many states. There were steps the family could have taken prior to her death to prevent this. If you or a loved one are on Medicaid, do your research and find out what you need to do to protect your assets.
Here's an article about this happening to another family: When the State Comes for Your Estate