An Act To Amend the Laws Governing MaineCare Estate Recovery Undertaken by the Department of Health and Human Services
Maine Legislature, Session 124, LD 0365
Committee: Judiciary
Sponsors: MILLS, RICHARDSON, HOBBINS
Amends: 18-A MRSA §2

Legislative Document 
No. 365 
S.P. 129 
In Senate, February 5, 2009 
An Act To Amend the Laws Governing MaineCare Estate Recovery 
Undertaken by the Department of Health and Human Services 
Submitted by the Department of Health and Human Services pursuant to Joint Rule 204. 
Reference to the Committee on Judiciary suggested and ordered printed. 
Presented by Senator MILLS of Somerset. 
Cosponsored by Representative RICHARDSON of Warren and 
Senator: HOBBINS of York. 
Printed on recycled pilper 
9tg(J~ 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State; of Maine as follows: 
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Sec. 1. 
18-A MRSA §2~401,.as·amended by PL 2001, c. 57, §1, is fmiher 
amended to read: 
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§2-401. Homestead allowance 
A surviving spouse of a decedent who was domiciled in this State is entitled to a 
homestead allowance 0[,$10,000. If there is no surviving spouse, each minCir child and 
each dependent child of the decedent is entitled to a homestead allowance amounting to 
$10,000 divided by the number of minor and dependent children of the decedent. The 
homestead allowance is exempt from and has priority over all claims against the estate. 
Homestead allowance is in addition to any share passing to the surviving spouse or minor 
or dependent child by the will of the decedent unless'otherwise provided, by intestate 
succession or by way of elective share. The homestead allowance established by this 
section is the sole exemption available for a decedent's homestead. 
Sec. 2. 18-A MRS A §2-405, as corrected by RR 2003, c. 1, § 11, is amended to 
read: 
§2-405. Estate property exempt 
Notwithstanding any provIsIons to the contrary, any part of personal property 
included in the decedent's estate '.vhich shall be that is exempt under Title 14, section 
4422, on the date of the decedent's death, sh-all- is not Be liable for payment of debts of the 
decedent or claims against hls the decedent's estate; provided, except that nothing in this 
section mav be deemed to affect affects the provisions of sections 2-401 through 2-404. 
Sec. 3. 22 MRS A §14, sub-§2-X,~, as enacted by PL 1993, c. 707, Pt. I, §1, is 
amended to read: 
F. 
As used in this subsection, unless the context otherwise indicates, the term 
"estate" means: 
(I) All real and personal property and other assets included in the recipient's 
estate, as defined in Title 18-A, section 1-201; and 
(2) Any other real and personal property and other assets in which the recipient 
had any legal interest at the time of death, to the extent of that interest, including 
assets conveyed to a survivor, heir or assign of the deceased recipient through 
tenancy in common, survivorship, life estate, living trust, joint tenancy in 
personal property or other arrangement.by any legal mechanism, means or 
arrangement, including, but not limited to: 
(a) Tenancy in common; 
(b) Survivorship; 
(c) Living trust; 
Cd) Joint tenancy in personal property; 
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) 
) 
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ee) Joint tenancy in real property created on or after April 1, 2006; or 
CD Transfer of a remainder interest in real property, with reservation of a life 
estate interest, executed on or after April 1,2006. 
SUMMARY 
This bill provides that the homestead allowance established in the Maine Revised 
Statutes, Title I8-A, section 2-401 is the sole exemption available for a decedent's 
homestead. It also provides that only personal property included in the decedent's estate 
that is exempt under Title 14, section 4422, which contains the list of property exempt 
from attachment and execution, is not liable for payment of debts of the decedent or 
claims against the decedent's estate. Current law provides that any part of the decedent's 
estate that is exempt under Title 14, section 4422 is not liable for payment of debts of the 
decedent or claims against the decedent's estate. 
This bill also amends the definition of "estate" for the purposes of recovery by the 
DepaJiment of Health and Human Services for MaineCare expenditures. 
This bill 
establishes April 1, 2006 as the date on which celiain transfers are made fully subject to 
the reach of estate recovery activities.