1. ESTATE RECOVERY: HOW TO PROTECT YOURSELF FROM A REIMBURSEMENT CLAIM OF THE STATE OF MICHIGAN P. Haans Mulder, JD, MST, CFP® Cunningham Dalman, P.C. 321 Settlers Road Holland, MI 49423 (616) 392-1821 phmulder@holland-law.com

2. Background Attorney and Partner at Cunningham Dalman, P.C. Have a Masters in Tax (MST), CFP® and specialize in estates/elder law and business planning Serving the Holland area since 1900

3. Background Cunningham Dalman, P.C. has been serving the lakeshore since 1900 We have 15 attorneys specializing in all areas of the law Serving the Holland area since 1900

4. Overview What is estate recovery and why is it important What types of assets does estate recovery apply to When does it apply and what does the process look like Serving the Holland area since 1900

5. Overview How do you protect your assets against it What options do you have if it does impact you Some other things to be concerned about Serving the Holland area since 1900

6. What is estate recovery? It is a process that the State of Michigan gets reimbursed for the Medicaid services it has paid for It does not put a lien (i.e. a Medicaid lien) on your exempt assets during your life or force a sale Serving the Holland area since 1900

7. What is estate recovery? It applies to people age 55 years or older who have received Medicaid (i.e. long term care) services Covers Medicaid services back to September 30, 2007 Serving the Holland area since 1900

8. What assets does estate recover apply to? It only applies to assets that have to be probated That has the potential to include all assets (house, bank accounts, investments, vehicle, personal property, etc.) Serving the Holland area since 1900

9. What assets does estate recover apply to? But…the only assets that are typically left are: bank account, personal property (including vehicle), and your house The house will be the most significant asset, but do not loose sight of the others Serving the Holland area since 1900

10. What does the estate recovery process look like? A family member will receive an estate recovery questionnaire when the Medicaid recipient passes The form indicates that it needs to be completed in two weeks Serving the Holland area since 1900

11. What does the estate recovery process look like? It is not clear what happens next… If you have a basis to claim a “hardship waiver,” you need to request that form Serving the Holland area since 1900

12. How do you protect against estate recovery? The most effective way to protect your house is with a “ladybird deed” because it avoids probate There is an attempt to change this so you should consider doing it now if it is “grandfathered” Serving the Holland area since 1900

13. How do you protect against estate recovery? This deed has other benefits The house remains an exempt asset during the Medicaid recipient’s life By having the house avoid probate, those costs and that hassle are also avoided Serving the Holland area since 1900

14. How do you protect against estate recovery? What about other assets besides the house You should make sure they avoid probate (i.e. having your trust named as owner, naming a beneficiary, etc.) Serving the Holland area since 1900

15. What options do you have if estate recovery impacts you? There might be an exemption There is an exemption for a Medicaid recipient’s spouse An exemption applies if there is a child who is under 21 years old and is living in the house Serving the Holland area since 1900

16. What options do you have if estate recovery impacts you? An exemption applies if there is a child who is blind or permanently disabled and is living in the house Another exemption covers someone who cared for the Medicaid recipient for two years and this delayed Medicaid Serving the Holland area since 1900

17. What options do you have if estate recovery impacts you? An exemption applies to a Medicaid recipient’s sibling who has an ownership interest in the house and lived there at least one year before the person was admitted to the nursing home Serving the Holland area since 1900

18. What options do you have if estate recovery impacts you? You might be able to obtain a “hardship waiver” This applies to farm or business property It also covers a house of “modest value” Serving the Holland area since 1900

19. What options do you have if estate recovery impacts you? This is defined as a house that is less than 50% of the average value of homes in the county the person lived in It is not clear how this will be applied Serving the Holland area since 1900

20. Some other things to be concerned about When a single person is on Medicaid, he or she can keep the house However, he or she will not be able to use Social Security and other income to pay the house expenses Serving the Holland area since 1900

21. Some other things to be concerned about This typically means that a child or beneficiary must pay these expenses You should protect your right to be reimbursed by executing and recording a mortgage against the house Serving the Holland area since 1900

22. Some other things to be concerned about This gives your reimbursement claim higher priority than the State of Michigan’s estate recovery right You will get paid when the house sells Serving the Holland area since 1900

23. Some other things to be concerned about You should make sure the Medicaid recipient has signed a financial (also known as a general durable) power of attorney That way, the agent can execute the mortgage Serving the Holland area since 1900

24. This is subject to change so you have to stay informed… Serving the Holland area since 1900

25. Stay informed by receiving our monthly newsletter (register by emailing mary@holland-law.com) Serving the Holland area since 1900

26. Questions…… Serving the Holland area since 1900

27. Thank You P. Haans Mulder, JD, MST, CFP® Cunningham Dalman, P.C. 321 Settlers Road Holland, MI 49423 (616) 392-1821 phmulder@holland-law.com mary@holland-law.com www.holland-law.com Serving the Holland area since 1900