Mar 25, 2022
Is there an inheritance tax in Texas?
While there may not be an inheritance tax in Texas, your estate may be subject to the federal estate tax...read on to find out more.
If a family member was receiving Medicaid services when they died, the estate executor needs to notify Florida’s benefits department providing the Medicaid health insurance of that person's death. It can be difficult to think about reporting a loved one's death to the government, especially when you're in the midst of grieving, but ensuring that a death is reported right away will help avoid unnecessary and difficult delays down the line.
To report the death, you simply need the deceased's date of birth and social security number. It might be in their personal records, or you can use this form in order to get the information from the Social Security office. In some cases, funeral homes may offer to notify Medicaid and other appropriate agencies on your behalf. If you're planning to notify the SSA yourself, you will also need to submit a copy of the death certificate with the form.
In Florida, an estate executor—also known as a personal representative—will have to contact the Agency for Health Care Administration with a notice of death and a copy of the death certificate.
Sometimes the funeral home director will take over this task. They use the Electronic Death Registry so that the right information gets to the SSA.
According to Florida Statutes 409.9101, Medicaid has the right to reclaim any payments made to the recipient from the recipient’s estate. In essence, Medicaid becomes another creditor of the estate. Florida’s Medicaid program outsources its payment collection to a third party called Conduent.
For example, if your father was in a nursing home towards the end of his life, then his Social Security check likely went straight to the nursing home to cover the costs for his care. Medicaid may have paid any remaining costs.
If your father had any assets when he died, then that money could be used to "pay back" Medicaid. This could include selling a family house, his personal belongings, or any inheritance he may have received.
Some people may try to give some of their assets away in order to prevent this from happening. However, the probate court frowns on this and must disclose any assets if Medicaid asks. Or, Medicaid may require that the assets be returned to the organization. A professional estate planner can help you avoid these pitfalls and ensure that your and your loved ones' property remains with the family.
Part of the probate process includes sending out information of your family member's death to any benefit providers. If you aren't sure how to take care of these things, ClearEstate can help. We're a professional estate planning and settlement service in Florida, and we’re there for you at every stage of the estate settlement process. This includes notifying the Department of Veterans Affairs, Social Security, and any major credit reporting agencies (Experian, Equifax, and TransUnion).
Don't try to navigate this complicated process alone. Call the professionals at ClearEstate today for a free consultation and find out how we can help.
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