Legal Question in Wills and Trusts in Pennsylvania

Medicaid recovery is mandated by each state from the parent's assets. You do not indicate where the parent resides or whether they are married or not. It will depend on how the land is owed and whether there is anything in the estate to pay the claims when they pass. It will depend also if the parent gets Medicaid (which is for poor people regardless of age). The amount of the debt will be relevant as well - if under a certain amount, Medicaid might be willing to foregive the debt.

The insurance will not ask for payment from you if your parent passes unless they somehow overpaid and are seeking reimbursement. Rather, any claims incurred within 6 to 12 months of death (here in NC its 12 months, it is 6 months in PA) will be claims against the estate by the hospital. The personal representative will have to notify these individuals so that they can file claims. To the extent Medicaid pays, it will also be notified.

The childrens' credit will not be affected; they are not personally liable for the debt. However, they cannot keep the parent's property and not pay the bill. I do not know how the home is owned or its value or the cost of the care provided.

Assuming that the parent has enough money to pay any claims only by selling the home, either the home will have to be sold or else whoever wants the home may have to pay money into the estate in an amount needed to satisfy any claims.

The children do not have to be burdened with home ownership. I cannot discuss your parent's desires with you for ethical reasons. Your parent, if they are alert mentally, can make a will providing that at their death, the home is to be sold and the proceeds used to pay any claims and that any money remaining will go to the beneficiaries. If there is not enough money, then debts/claims have to be paid in order of priority, as specified by the law of the state where your parent lived at the time of their death and has an estate. It might also be where the land is located if your parent is in a hospital or nursing home in another county. It is important NOT to pay any claims, even the funeral bill. The personal representative hs to first determine what assets there will be and whether there is enough money to pay the claims.

However, I do not know what is in your parent's best interests and they really need to speak with a lawyer in their state. Some lawyers may be willing to go to the hospital - I do not know the particular condition of your parent to know if this will work or not.

You say there are no dependents but indicate that your parent has at least one child (you) and possibly others. What do you mean? You are still a child of your parent even though you are an adult and not financially dependent on him/her for support.