Many Ohio families are blindsided after a loved one passes away to learn that the State of Ohio intends to recoup the cost of Medicaid-funded nursing home care from the deceased’s estate. This process — called Medicaid estate recovery — is required by both federal and Ohio law, and without advance planning, it can consume the inheritance a family expected to receive.
How Does It Work?
Under Ohio Revised Code § 5162.21, the Ohio Department of Medicaid must pursue recovery of the costs of Medicaid services paid on behalf of a permanently institutionalized individual of any age and on behalf of any Medicaid recipient who was 55 or older.
After the Medicaid recipient dies, the person responsible for the estate (the executor or administrator) is required to notify the Medicaid Estate Recovery Program. The state then has a set period to present a claim for the total amount of Medicaid benefits paid — which for nursing home care can easily reach hundreds of thousands of dollars.
What Assets Are at Risk?
Ohio uses an expanded definition of “estate” for recovery purposes. This includes all assets that would pass through probate, but it also extends to any real or personal property in which the individual had any legal interest at the time of death — including assets that pass through joint tenancy, survivorship deeds, or other non-probate mechanisms.
This broad definition means that simply avoiding probate (through joint ownership or transfer-on-death designations, for example) does not automatically protect your assets from estate recovery.
When Is Estate Recovery Delayed or Prevented?
Ohio law prohibits estate recovery while certain individuals are still living. No recovery can occur while the Medicaid recipient’s surviving spouse is alive. Recovery is also prohibited while a child under 21, or a child of any age who is blind or disabled under federal definitions, is still living.
For the home specifically, recovery is delayed while a qualifying sibling or caretaker child resides in the property under conditions outlined in the statute.
Can You Plan to Minimize Estate Recovery?
Yes. With proper advance planning, families can significantly reduce — and in some cases eliminate — their exposure to Medicaid estate recovery. Strategies may include irrevocable trusts, proper structuring of asset titles and beneficiary designations, and other legal approaches that move assets outside the reach of estate recovery claims.
The key is timing. The earlier planning begins, the more options are available. However, even families who did not plan in advance may have options — particularly if a surviving spouse or qualifying dependents are involved.
What Should You Do Right Now?
If a family member is currently receiving Medicaid-funded nursing home care — or may need it in the future — consult with an experienced elder law attorney to understand your family’s exposure and explore available strategies.
If a family member has already passed away and you have received a Medicaid estate recovery notice, an attorney can help you understand the claim, identify applicable exemptions, and respond appropriately.
Call The Toron Law Firm at (513) 563-3007 for a free consultation.
