Dealing with the loss of a loved one is a very difficult process, especially when it involves probate and Medicaid in Washington. There are many aspects of probate that you need to be aware of, especially when it comes to the estate recovery process. This can feel very overwhelming to navigate on your own, which is why it is strongly recommended that you seek the legal assistance of a Washington probate attorney.
What Is Probate in Washington?
Before we discuss probate and Medicaid in Washington, we first need to explain what probate actually is. Probate is a legal process that can happen after someone passes away, where their estate is dealt with according to Washington probate law.
The process of probate usually includes valuing assets, identifying and paying debts, and distributing assets to living beneficiaries. The individual details of the probate process will be dependent on whether or not a trust or will was left behind, as this will usually provide more detailed instructions.
If there aren’t any legal documents outlining the individuals last wishes, probate will follow estate inheritance laws. The probate court will usually appoint an executor to oversee the probate process and will distribute assets according to the closest relatives.
It’s also important to note that probate is not mandatory in Washington state. There are some situations where estates will not need to go through probate, such as if they have less than $100,000 in assets. There are also other strategies that can help protect an estate during probate, such as placing assets in an irrevocable living trust.
To learn more about how you can avoid probate or better prepare for it, get in touch with a probate attorney in Spokane. Seeking legal representation is especially important for more complicated estate planning cases. For instance, those who are on Medicaid should get legal assistance, as their estate may be subject to Medicaid estate recovery.
How Probate Interacts with Medicaid Estate Recovery
When it comes to probate and Medicaid in Washington, federal law requires the program to acquire reimbursement for the benefits that were paid for the duration of the individual’s lifetime. This process occurs during probate.
It is also important to understand that some states recover beyond the federal minimum, with Washington being one of those states.
Also, in Washington, services that have been paid for by Medicare or private insurance will not qualify for estate recovery. However, just about anything else that the individual owned at the time of their death could be recovered, such as property, vehicles, stocks, bonds, bank accounts, etc.
Part of why this process is so complex is that there are many variables that can impact what estates will go through estate recovery and how extensive it will be. Usually, this is dependent on the person’s age and when they first started to receive long-term care services. It can also include the types of services they received.
Because Medicaid recovery in Washington state is so complex, it is essential that you hire a probate attorney in Spokane. An attorney will help you better understand Medicaid estate recovery in Spokane Valley and whether or not this is something that applies to your situation. They can also help you come up with long-term care Medicaid planning strategies to avoid medicaid estate recovery.
How to Protect Your Estate From Medicaid Estate Recovery
Although estate recovery can feel very intimidating, there are strategies that you can use to try to get around this. This is why estate planning is so essential, as it puts safeguards in place to protect your assets and the best interests of your beneficiaries.
Here are some of the most common ways that you can protect your assets if you are subject to Medicaid estate recovery:
- Establishing irrevocable trusts: Irrevocable trusts are legal documents that cannot be changed or canceled once they have been established and can be used to protect assets from Medicaid estate recovery. Once assets are transferred to the irrevocable trust, they are no longer owned by the grantor, protecting them from being collected.
- Transferring assets early: You can also protect assets from recovery efforts by transferring them more than five years before you apply for Medicaid.
- Using exemptions or waivers: Depending on your situation, you may qualify for certain exemptions or waivers that can help you avoid some estate recovery efforts. Examples of this include hardship waivers or exemptions that apply to particular family members.
- Shared ownership: Medicaid estate recovery only applies to property that you own, which is why it can be useful to share ownership with family members. For example, if your home is in your name alone, it would most likely be subject to recovery. However, if it is in your name and that of other family members, only the part that you own would be subject to recovery.
You should discuss your options with a probate attorney, who will have a more accurate idea of how probate and Medicaid planning work. They can instruct you on your options so that your estate plan will better protect your assets and your beneficiaries.
Get in Touch With a Probate Attorney Today
If you have more questions about probate and Medicaid in Washington, contact a Spokane probate attorney at Legacy Law Group. Contact us today at 509-315-8087 to speak with one of our attorneys to get the process started.
FAQ
What happens if my loved one dies without a trust or will?
The estate will have to go through the Washington probate process, which could potentially trigger Medicaid estate recovery if your loved one received any benefits.
Can we avoid estate recovery during probate?
Avoiding estate recovery during probate is a possibility with the right strategy, exemptions, and legal tools. The best way to accomplish this is with the help of a probate attorney who will ensure you are following Washington laws and using the best strategies for your situation.
Does probate always happen after someone dies?
No, probate proceedings are not always necessary, depending on different estate factors. This is often dependent on the value of the estate, the type of estate, the legal documents in place, and how the assets are titled.
