Lady Bird Deed And Medicaid. Texas Florida Michigan West Virginia and Vermont have lady bird deed provisions. After a Medicaid recipient dies the state can make a claim for repayment of benefits from the recipients estate.
To qualify for Medicaid an applicant must meet certain asset and income limits. It may help preserve your eligibility for Medicaid and keep assets in the family that otherwise would be taken by the state to repay the cost of Medicaid benefits you receive during your life. Further you will not lose your home exemption for using a Lady.
Thus using a Lady Bird deed can allow heirs to inherit a property that might otherwise have been sold to pay a Medicaid reimbursement claim.
Further you will not lose your home exemption for using a Lady. Lady bird deeds are used for a variety of reasons the most popular reasons are to avoid probate and to avoid the Medicaid Estate Recovery Program MERP. Lady Bird Deed and Medicaid Michigans Medicaid Recovery or Estate Recovery Laws allow the State of Michigan to submit a claim in the estate of an individual who received Medicaid benefits. The government scrutinizes asset transfers in the years leading up to a Medicaid application looking for people who gave away.