Medicaid Update: Michigan has joined all the other state in Medicaid estate recovery. Michigan will be able to take home from the estates of deceased recipients (with no surviving spouse).
According to Jim Schuster, Elderlaw attorney, "avoiding probate avoids the grab". Call his office at 248-356-3500 for his article on "Medicaid Estate Recovery and How to Avoid It".
Other Medicaid changes include:
The look back period will be 5 yrs (was 3 yrs)
The homestead is limited to $500,000 (was unlimited)
Automobile is limited to $25,000
(was unlimited - could have been driving a Porsche)
Only $6,000 of rental property is exempt
Annuities must name the government as the beneficiary only after spouses or disabled children.
Penalty period begins on filing.