Farmington, MI asked in Health Care Law and Elder Law for Ohio

Q: Ohio Medicaid Estate Recovery / is benefit from term life ins. no cash value paid to beneficiary eligible for recovery.

Policy had no cash value, and was paid out directly to the beneficiary / not to the estate. Beneficiary is the child of deceased, over 21 and not disabled.

Received letter from Medicaid Asset Recovery. Want to know if this life insurance benefit is eligible to be taken by them.

Related Topics:
1 Lawyer Answer
Moshe Toron Esq
Moshe Toron Esq
Answered
  • Estate Planning Lawyer
  • Cincinnati, OH
  • Licensed in Ohio

A: Ohio Law is not crystal clear on this. On the one hand, the Estate Recovery statute claims a very broad right to any asset held by the Medicaid recipient at death. On the other hand, the Ohio statute regarding life insurance says that it is usually protected from creditors, as long as a beneficiary is named and the beneficiary is not "the Estate" of the deceased. It has been my experience that the Ohio Attorney General for Medicaid is not attempting to collect on life insurance, as long as there is a beneficiary named on the policy. However, Ohio sometimes subcontracts their Medicaid Estate Recovery work to individual law firms. These firms may be unaware of the subtleties of the law and may make a demand for recovery of life insurance. In my opinion, an Elder law attorney should be consulted before responding to any letter from the Ohio Attorney General or the law firms working on their behalf.

1 user found this answer helpful

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.