August 10, 2017

Knowing your rights as it relates to Medicaid can be extremely important if you intend to qualify for this government program. Federal Medicaid regulations mandate that a state obtain reimbursement from an individual’s estate for the cost of long term nursing facility services, as it relates to Medicaid. 

The service may put a lien against a person’s personal or real property by a New Jersey Medicaid program as a way to secure reimbursement for services. In New Jersey, this Medicaid program carries out two types of Medicaid liens. The first is a pre-death lien placed on a person’s property prior to death.

An estate recovery or a post-death lien is filed after the death of the recipient. After an individual enters into the Medicaid program and is classified as permanently institutionalized, a lien is filed against a property to prevent assets from being transferred out avoid a Medicaid lien. This can have significant implications for your estate planning process and for that reason, should be discussed directly with a knowledgeable lawyer as soon as possible.