19.50.05 Methods of Estate Recovery

*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016. Please refer to the EPM for current health care program policy information. ***

Methods of Estate Recovery

There are four methods for estate recovery in which a county can satisfy a claim for Medical Assistance (MA), Alternative Care (AC) and General AAssistance Medical Care (GAMC).

The responsible county can file a claim in a district court where the client’s or the client’s surviving spouse’s estate is being administered. If the decedent or a predeceased spouse of the decedent received assistance for which a claim for MA, Qualified Medicare Beneficiary (QMB), Services Limited Medicare Beneficiary (SLMB), Qualified Individuals (QI), Qualified Working Disabled (QWD), Alternative Care (AC) and General Assistance Medical Care (GAMC) could be filed, the personal representative of the estate or the attorney for the personal representative shall serve the commissioner of human services with a notice of possible MA claim.

The notice to the commissioner must include the decedents and each of the decedent’s predeceased spouses’ full names, dates of birth, and Social Security numbers. Once the notice is received by DHS, a response will be sent to the personal representative or the attorney of the personal representative stating if the decedent or the decedent’s predeceased spouse(s) received assistance in which a claim may be filed. A copy of the response by DHS will also be sent to the county in which the probate is commenced and, if separate, the county of financial responsibility.

Once the county receives the response to the notice to commissioner, the county shall verify that the response is accurate. If a claim does exist for MA, QMB, SLMB, QWD, QI, AC and GAMC received by decedent or the decedent’s predeceased spouse(s), the county shall file a claim as soon as possible, but no later than, four months from the date of service of the notice to the commissioner.

A claim for MA, QMB, SLMB, QI, QWD, AC and GAMC within a probate proceeding should be in writing and contain the claimant’s name and address, the amount of the claim, and the basis of the claim. The claim can be presented by delivering or mailing it to the personal representative or by filing it with the court administrator.

Note: The fact that a decedent, or their predeceased spouse, received MA, QMB, SLMB, QI, QWD, AC and GAMC may not always ensure a county will be a known and identified creditor. Therefore, if the county has a claim for MA, QMB, SLMB, QI, QWD, AC, and GAMC the county should file a Demand for Notice with the court as soon after the client’s death as possible.

If an individual has been deceased for more than three years and has left property and no probate proceeding occurred, an interested party may petition the court of the county of the decedent’s residence or the county where the property is located to determine the descent of the property and to assign such property to the persons that are entitled.

After a petitioner or their attorney files a petition for a decree of descent, they must apply to the county agency for a clearance of Medical Assistance (MA) claims against the decedent or a predeceased spouse who received benefits under MA, QMB, SLMB, QI, AC, and GAMC. The Application for Certificate of Clearance for Medical Assistance - Decree of Descent (DHS-6165A) must be provided by the petitioner to the county agency in which the petition is pending.

1. the name, date of birth, and Social Security number for the decedent and any predeceased spouse.

3. the names, addresses and telephone numbers of the decedent’s/predeceased spouse’s heirs and/or devisees, attorney or agent.

The county agency receiving the application must process it and issue a clearance for MA claims even if it was not the county agency financially responsible for the decedent or predeceased spouse(s).

1. Determine whether the decedent or any predeceased spouses named in the application received any MA or AC under Minnesota Statutes, Chapter 256B, or GAMC under Minnesota Statutes, Chapter 256D prior to repeal of the program. Receipt of MA, AC or GAMC gives rise to an estate claim for recovery under Minnesota Statutes, Section 256B.15.

2. Complete the Certificate of Clearance for Medical Assistance Claim-Decree of Descent (DHS-6165B). In the body of the certificate of clearance, indicate whether a claim for recovery of MA against the decedent or any of the predeceased spouses named in the application exists. If there is a claim, indicate the claim amount next to the name of the person for whom a claim exists. The certificate of clearance for MA claim must include:

n any predeceased spouses named in the application, whether or not there are any MA claims against each person named in the application, and if so, the total amount of the claim; and

n name, address, and telephone number of the county agency issuing the certificate.

3. Obtain the signature of the county agency director or his or her representative. The certificate may be signed by the director of the county agency or by any person the agency director designates to sign the certificates on his or her behalf.

4. The county agency must mail a Certificate of Clearance for MA Claim after receiving the application and making a determination of a possible claim. Mail the completed certificate to the applicant at the address on the application.

The laws extending the right to file claims for recovery of medical assistance to proceedings for a decree of descent are effective for petitions for a decree of descent filed on or after August 1, 2000. The effective date does not rely on the date of death of the decedent.

Counties may use an Affidavit of Collection of Personal Property instead of filing a claim in a court proceeding. A deceased client must meet all of the following conditions to have the affidavit filed:

l The client received MA, QMB, SLMB, QI, AC or GAMC in which a recovery is allowed.

The county must serve the affidavit on the financial institution, person or other entity holding the client’s money or property, including the contents of a safe deposit box.

Note: For funds held in a joint or pay on death account, the affidavit must contain the amount of the county’s claim and a good faith estimate of the extent to which the deceased client was a contributor or beneficiary of the funds in the account.

The institution, person, or other entity receiving the affidavit is only obligated to turn over the deceased client’s money or other property still in its possession when the affidavit is served.

Note: The institution is not obligated to turn over funds or property that has already been distributed to the joint owner or payable on death beneficiary.

At the time of the death of the grantor owner of a TODD, the grantee or their attorney or agent must apply to the county agency for an Application for Certificate of Clearance for Medical Assistance Claim-Transfer on Death Deed (DHS-5893) to request clearance of MA claims against the grantor owner or their predeceased spouse.

1. the name, date of birth, and social security number for the deceased grantor owner and any predeceased spouse.

2. the legal description of each parcel of property covered under the certificate of clearance.

The county agency receiving the application must process it and issue a clearance for MA claims even if it was not the county agency responsible for the grantor owner or predeceased spouse.

1. Determine whether the grantor owner or any predeceased spouses named in the application received any MA under Minnesota Statutes, Chapter 256B. Receipt of MA gives rise to an estate claim for recovery under Minnesota Statutes, Section 256B.15.

2. Complete the Certificate of Clearance for Medical Assistance Claim-Transfer on Death DEED (DHS-5893). In the body of the certificate of clearance, indicate whether a claim for recovery of MA against the decedent or any of the predeceased spouses named in the application exists. If there is a claim, indicate the claim amount next to the name of the person for whom a claim exists. The certificate of clearance for MA claim must include:

n any predeceased spouses named in the application, whether or not there are any MA claims against each person named in the application, and if so, the total amount of the claim; and

n name, address, and telephone number of the county agency issuing the certificate.

3. The certificate may be signed by the director of the county agency or by any person the agency director designates to sign the certificates on his or her behalf. The certificate must be signed in the presence of a notary.

Note: If an MA claim appears in the certificate, provide the devisees, heirs, or surviving occupant named in the application with notice of the claim and of their right to apply for a hardship waiver. Provide the notice in the same way as when the county files an estate claim for recovery of MA in probate proceedings.

If an MA claim appears in the certificate, the county agency is the claimant and the recording of the certificate in the county in which the real property is located constitutes a filing of a claim. The MA claim listed in the certificate is payable, in whole or in part, from the property identified in the certificate of clearance. The claim can be allowed, denied, and appealed in the same way as a claim in a probate proceeding. The county claiming interest in the real property conveyed by a TODD may petition or move the district court in the county in which the real property is located or in the county in which a probate proceeding affecting the estate of the grantor of the TODD is pending, for an order allowing sale of the real property for the recovery of MA benefits received. The net sale proceeds from such a sale must be used to pay MA claims. Minnesota Statutes, section 525.313 applies to collection, compromise, or otherwise settlement of the MA claim. In counties where the district court has a probate division, action to enforce the MA claim against the real property listed in the certificate of clearance is determined in the probate division. In other counties, the district court has jurisdiction to determine any matter affecting real property purporting to be transferred by a TODD.

Treat all MA recoveries from transfer on death deeds as recoveries under Minnesota Statutes, Section 256B.15.

Chapter 19 - Assets	Effective: May 1, 2013
19.50.05 - Methods of Estate Recovery	Archived: June 1, 2016 (Previous Versions)