States are allowed to recover money from countable asset, exempt assets, transferred assets, and assets in a trust. States have the right to collect insurance or annuity proceeds from beneficiaries. But she will recover the proceeds of a garage sale if the heirs sell the personal property. Money that was transferred to an individual before the look-back period took effect can be recovered. It is happening.
States recover money from trusts.
Funds in the Miller Trust, discussed above to help someone quality for Medicaid, go to the state. The smart people suggest this trust or that trust to qualify for Medicaid. States like to see trusts because there is a complete accounting of the Medicaid beneficiary's money in the trust. They know who got how much and where to go to recover the amount of money they paid for the individual's benefit. Many states are not shy about asking for their share of the trust.