Limits on Medicaid Collections from Estates 450-01-20-05

Insolvent Estates 450-01-20-05-01

(Revised 1/15/2011 ML #3253)

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If a decedent’s estate has insufficient property to pay all claims and debts (is insolvent), claims are paid in order of priorities established by law.

“On the death of any recipient of medical assistance who was a resident of a nursing facility, intermediate care facility for the mentally retarded, or other medical institution . . . or who was fifty-five years of age or older when the recipient received the assistance, and on the death of the spouse of the deceased recipient, the total amount of medical assistance paid on behalf of the recipient . . . must be allowed as a preferred claim against the decedent’s estate after payment, in the following order, of:

1. Funeral expenses not in excess of three thousand dollars;
2. Expenses of the last illness, other than those incurred by medical assistance;
3. Expenses of administering the estate, including attorney's fees approved by the court;
4. Claims made under chapter 50-01 [General Assistance];
5. Claims made under chapter 50-24.5 [Basic Care Assistance, Expanded SPED, and Adult Foster Care]; and
6. Claims made under chapter 50-06.3 [Human Service Centers] and on behalf of the state hospital; and
7. Claims made under subsection 4 [of section NDCC 50-24.1-07 – Clawback].”