My widowed father-in-law passed away in December. We are now getting letters from Michigan DHS about Estate Recovery. He lived in a handicapped apartment & got by on monthly SSI payments. He had no house, property or vehicle. He only had personal items that really don't have much monetary value. The money he did have went to the funeral home for burial (I have receipts for this). I'm not sure what they think they are going to get from his estate & I don't think we should have to pay since we didn't get anything money-wise. Any advice?
I am assuming here that SSI means Supplimental Insurance not Social Security. With SSI, Medicaid for health is usually included.
Please don't worry. Its just a matter of supplying the info needed.
This is NOT an elder law attorney issue in my experience.
The debtor - your late FIL - is dead, it’s a probate laws situation; but that does NOT mean you need to get a probate atty though.
Heres what’s likely happening..... as dad was on Medicaid & on Medicaid after age 55, state - due to Bush era DRA 2005 - is required to attempt a recoup or recovery via MERP of costs paid from any his assets. Which as he’s dead are assets of his estate. Whatever happens is under probate & property laws. This is all abt figuring out if assets exist. It is a NOI - Notice of Intent (like to file a lien or claim).
-So for the letter, was a questionnaire attached? maybe first letter was your dad died & theres $ owed & your the responsible person for this (not a warm & fuzzy letter). Then 2nd had questionnaire.
-Are letters coming from the actual state of MI or from something else on behalf of the state? Like from HMS or PNG? If so, then MI has an outside contractor for MERP. It’s imho going to be more proactive if it’s a contractor. Why? Cause the get whatever as per state contract and a % of the recovery. It’s a riff on the debt collectors playbook.
- There should be a specific time frame in which you were to respond to notice & questionnaire. Has this date passed?
Response within the time frame us important as it should put MERP on notice that either family / heirs have exemptions or exclusions to MERP &/or that probate is being opened. If no response done, the position seems to be that they assume debt is valid & they can go after assets.
heres my suggestions- even if submit by date has passed:
- fill out questionnaire as best as you can.
- include a copy of last 3-4 bank statements. They should show there's no real $ there. If account closed get bank officer to do a letter as to this and to whom was the POD (pay on death)
- if you are out $ for funeral that’s included too. Do an “invoice” of all costs paid (like casket $1890.12) and state above will be filed as a claim against the estate should probate be opened.
- ditto for any other post death stuff for him you all paid for.
- some sort of statement as to if he had a life insurance policy and to whomever beneficiary is. This to me can be sticky, cause if he actually did have a term life policy and hubs or others were beneficiary, that’s hubs $. It is NOT an asset of the estate. But sticky IF the policy had his estate as beneficiary, then it is and depending on what amount of $ it is, you could have to deal with recovery attempt. Last millennium it was pretty standard for men to have life insurance go to their estate & managed by probate attorney as wife was viewed as not being able to deal with finances.... my dad who died in the 1980s had it this way & meant mom had to open probate.
- some sort of statement as to what was his living situation. If he rented an apt, there's no property in his name that becomes an asset of his estate.
If he died still owing a home, or estate as beneficiary stuff, well whole other matter.... but that’s not your situation.
Make a copy of all & then mail a certified letter with a return receipt from USPS. Duo cost like $8. That green post card that’s the return receipt is mucho importante as it has a dated stamp & signature. If your correspondence has 2 address within it, send the stack to each address & again certified with return receipt.
if you still get letters.... rinse & repeat.
December to now (Feb) is pretty tight turnaround. I bet you’re within timeframe for submitting stuff. Good luck!
Thank you
Igloo always has great advice.