In Washington, the state can recover a deceased patient’s assets to offset the costs of long-term care. Being concerned about this is valid, especially when your family needs financial support in the future. While this is a standard legal process, there are specific exemptions and planning strategies that can prevent the state from recovering against the home.
How the Washington Estate Recovery Program works
If the state covers the cost of your long-term care services, they can seek reimbursement through the Estate Recovery Program. This applies when you meet either of these categories:
- Age 55 or older when you received Medicaid-funded long-term care
- A permanently institutionalized individual of any age, for whom the state has formally determined that they cannot reasonably be expected to return home
The state recovers probate and non-probate assets in which the deceased had a legal interest immediately before death, including life estates and joint tenancy interests.
If you leave behind your spouse, a child under age 21 and a child of any age who is blind or permanently disabled, the state must delay or defer recovery. However, the state may still file a lien to secure its interest and can initiate collection after the surviving spouse passes.
Why proactive planning is the best approach
Waiting until a loved one requires immediate care often limits your options. By utilizing tools such as Medicaid Asset Protection Trusts, you can structurally protect the home while maintaining eligibility for benefits. However, these strategies involve strict look-back periods and complex tax implications.
Managing a crisis with legal help
Early planning is key to preventing future complications. You have options available to protect the family home, but understand that this requires extensive preparation. Seeking assistance from an experienced attorney is wise to gain guidance on navigating Washington’s nuanced statutes.