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Apparently, the state has a lien of over $150.000 for welfare payments received over 20 years ago? So they will sieze the money left in the will to her from my aunt. Including the older car that was left to her (she has no car currently). If the lady refuses the money left in the will, can the matter just disappear?

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Im confused....Is the claim or lien for 150k against the estate of the deceased OR is it that someone who is a heir of the estate got 150k in medicaid services in her past and can't get the $ or car due to state claim against her?

If its against the estate, you or the executor follows Pam's advise.

But if it's a heir who is about get $$& a car from the estate and has found that the State is wanting to be repaid so the estate $$ is being withheld or placed in an escrow-like account, I'd suggest you get an atty ASAP. In 2005 DRA (deficit reduction act) was signed off by Bush. In DRA it was now required for states to do a recoup of Medicaid costs from receipients or their estate and set on the date each state signed DRA into their states laws. MERP was created. Now prior to DRA, the states could do a recoup but most states did not do this with a legally binding notice to Medicaid participants and those that did had haphazard & low recovery rates & went after big value estates. If CT preDRA paperwork was flawed in notice in your original Medicaid application from 20 years ago, then state cannot recoup $ from any payments made by Medicaid on your behalf prior to DRA. You'll likely need an atty to deal with this for you as its going to require some discovery for old applications and filing in probate. I'm gonna guess that the letter sent is one sent to all currently on Medicaid as most will just acquiesce to paying.....but if you contest it and the application really was back in the 1990's, well CT dept of aging probably isn't gonna find the original application or have the paperwork trail to make the claim or lein pass muster for probate. You need an atty to deal with this & ASAP.

Like for TX, DRA was signed into inclusion for TX law around March, 2006 (or thereabouts), so those on Medicaid before March 2006 cannot have MERP come after their assets. Only if they apply for a different Medicaid program after March, 2006 can state place a valid claim.
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Wow, Igloo572, you are a Treasure Trove of Fabulous Information! Whatever would we do without you!
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Estate probate pays bills against the estate first. Sell the car and put the money in the estate account. Pay all the bills in the proper order for Connecticut. If you are a first-time Executor, ask for help from an attorney. This could save you from being sued by any lien holders.
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