17 Sep Will Medicaid put a lien on my home when I die?

Q. In New Jersey, does Medicaid have a lien on your home when you die? What happens if you have a child on Medicaid who is disabled?
— Concerned

A. We understand your concerns.

Here’s what you should know.

Under federal and New Jersey law, the Division of Medical Assistance and Health Services (DMAHS) is required to recover funds from the estate of an individual receiving Medicaid benefits, said Shirley Whitenack, an estate planning attorney with Schenck, Price, Smith & King in Florham Park.

The estate consists of any property, whether in sole or joint name, that the beneficiary had any legal title to or interest in at the time of his or her death including a residence, personal or real property, bank accounts, a living trust or other arrangement, and proceeds of life insurance policies, she said.

She said the assets may also have designated beneficiaries.

“DMAHS will place a lien on property after the death of the Medicaid beneficiary if the amount to be recovered is in excess of $500 and the estate is in excess of $3,000 unless there is a surviving spouse, a minor child or a surviving child of any age who is blind or disabled,” she said.

You may want to speak to a qualified estate planning attorney to make sure you’re providing for your disabled child in the way you’d like after you die.

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This story was originally published in September 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.