Legal Question in Real Estate Law in California

Re: Letter from the State of California;Medicare Department

I am in the middle of this right now with the trust that I administer. The stupid beneficiaries in the trust that I run found some grifter lawyer to have me removed because I found out that MediCal is owed money and want to pay it back.

People cannot seem to understand that they have to pay for things, and when you die, your debts have to be paid first. Go sit some night in an emergency room and watch the poor, and children who have no insurance come in. Guess who pays for their care? MediCal. MediCal has to get that money back, so they can pay it to needy people on the street, not a bunch of whiny beneficiaries in a family trust that don't want their bills.

Quit ripping off the state and pay your bills.

Very truly yours,

Re: Letter from the State of California;Medicare Department

What you are asking for is the rest of California tax payers to pay for your father's care.

The home that your father owned was exempt being used in calculating the right to benefits from MediCal. However, after his death, the state is entitled to reimbursement from his estate. Obviously, you have not administered the trust estate properly.

You will either need to sell the house, refinance it, etc. in order to pay the obligation to the State of California. I would suggest that you consult with an attorney to represent you in this matter.

Re: Letter from the State of California;Medicare Department

You will probably have to pay the bill. I wish I could tell you that the bill was a mistake or that it's uncollectible, but it probably isn't.

Under Welfare & Institutions Code section 14009.5, the director of the Dept. of Health Services must seek reimbursement from the estate of a decedent who received Medi-Cal nursing, etc. services except where the decedent was under 55 years of age at death, had a living spouse, a child under 21, and possibly one or two other exceptions that probably don't apply.

"Estate" is defined broadly, going beyond the probate estate and including living trusts and probably certain gifts made within a certain time before death.

The state's claim, if unpaid, would probably result in a lien against the house, penalties and interest.

I can't quote the entire set of statutes and regulations that apply to these situations within the scope of a LawGuru answer, much less quote from cases, but if you search "Medi-Cal Estate Recovery;" W&I Code sections 10725, 14009.5, 14043.75; California Code of Regulations section 50960; Belshe v. Hope (1995) 33 Cal.App.4th 161; and California Advocates for Nursing Home Reform v. Bonta (2003) 106 Cal.App.4th 498; on Google or in a law library, you'll have a pretty good start on understanding this subject. See also 42 United States Code 1396p for underlying Federal law.

A local attorney who practices in the area of probate administration may be able to review your particular case for loopholes and could assist you in figuring out how the burden should be allocated between the heirs.

Re: Letter from the State of California;Medicare Department

You state that the government "should have paid the bill while your dad was alive," which leads me to believe you do not understand that Medicare IS the government. When elderly individuals are on medicare and need medical help and services and have no money, but also have a HOME, Medicare will go ahead and pay for those services while the individual is alive, BUT when he dies, his home must be sold or refinanced to pay Medicare back--the services and care are not "free." If you and your sisters had cared for your father and he had not needed to use Medicare/MediCal, then there would be no claim on the house. The fact that the house was in a trust is irrelevant in these circumstances and does not make the house unavailable for satisfaction of this claim. Think about it; it would be unfair to other taxpayers, (as well as bankrupt the country) if the government gave free medical to someone who has the assets to pay for that care--the bill is owed, but if there is not enough equity in the house to pay all of it, the state will accept what equity there is.