If you received Medicaid in order to pay for long-term care services such as nursing home care, every state's Medicaid program has a Medicaid Estate Recovery Program. This program allows the state to seek repayment for their services through a deceased recipient's estate. Medicaid explains this program to all new recipients and also files a notice with the representative of the estate, letting them know that it intends to file a claim.
The types of property that Medicaid can seek repayment through include the home and personal belongings left to heirs. Medicaid cannot seek repayment from assets transferred outside the probate process, including trust assets, real estate transferred by TODD or lady bird deed, financial accounts with pay on death beneficiaries, or retirement accounts or life insurance policies with properly designated beneficiaries.