When a loved one passes in long-term care.

When a loved one dies in a nursing home or assisted living facility, two separate but related legal processes come into play: probate and Medicaid estate recovery. Understanding how they interact is essential for anyone who stands to inherit the family home or who is serving as executor of the estate.

Probate is the court-supervised process of administering a deceased person's estate -- paying debts, filing tax returns, and distributing assets to heirs. If the loved one owned a home solely in their name, that home almost certainly must go through probate before it can be sold or transferred.

Medicaid estate recovery is the process by which the State of Connecticut seeks reimbursement for the cost of long-term care services it paid for on behalf of the deceased. If your loved one received Medicaid-funded nursing home care, the state may file a claim against the estate -- and the family home is often the largest asset the state looks to recover from.

This may sound intimidating, but it does not have to be. With the right information and the right team, you can navigate both processes and make informed decisions about the family home.

Connecticut's Medicaid Estate Recovery Program (MERP) is administered by the Connecticut Department of Social Services. Under federal law, every state is required to attempt to recover the costs of long-term care services from the estates of Medicaid recipients who were age 55 or older at the time they received benefits.

Here is what that means in practical terms for Connecticut families:

• Recovery is limited to the probate estate. Only assets that pass through probate are subject to recovery. Assets that transfer outside of probate -- such as jointly owned property with right of survivorship, life insurance policies with named beneficiaries, or retirement accounts with beneficiary designations -- are generally not subject to Medicaid recovery.
• The state files a creditor claim. During probate, DSS can file a creditor claim against the estate for the amount of Medicaid benefits paid. This claim must be paid from estate assets before any distributions to heirs.
• No one inherits the debt personally. The state can only pursue recovery from the estate itself. Heirs are not personally responsible for any remaining balance if the estate lacks sufficient assets.
• Connecticut changed its lien rules in 2021. As of July 1, 2021, the state ended the practice of placing real property liens during the Medicaid recipient's lifetime. This means you are unlikely to find a state lien on the property when you begin the probate process -- though the state can still file a claim during probate.

Not every family home is subject to Medicaid estate recovery. Connecticut law provides several important protections that can defer or waive recovery entirely. Here are the most common situations where the home is protected:

If any of these situations apply to your family, it is worth discussing with both a probate attorney and a real estate professional who understands Medicaid recovery. The protections are real, but they often require proper documentation to be effective.

If the home was owned solely by your loved one, it must go through probate before it can be sold. Here is the typical sequence of steps:

• 1
  File the will and application. The executor files the will (if one exists) and an application for probate administration with the local probate court. The court then appoints the executor or personal representative.
• 2
  File a notice on the land records. Within two months of appointment, the fiduciary must file a Notice for Land Records (PC-251) to alert anyone searching the property's title that the estate is being administered.
• 3
  Obtain a probate appraisal. The court requires a professional appraisal of the home to establish its fair market value at the date of death. This appraisal is filed as part of the estate inventory.
• 4
  File the inventory. A complete inventory of estate assets, including the probate appraisal of the home, must be filed with the court within two months of the executor's appointment.
• 5
  List the home for sale. The executor can list the home as soon as they are formally appointed. Working with a real estate agent who understands probate sales is especially valuable when a Medicaid claim may be involved.
• 6
  Pay creditors and distribute. After the sale closes, proceeds are used to pay any valid creditor claims -- including a Medicaid estate recovery claim if one was filed -- before remaining funds are distributed to heirs.

The timeline from appointment to closing typically spans 4 to 6 months, depending on the market and the complexity of the estate.

The presence of a Medicaid claim does not prevent you from selling the home. In fact, selling the home is often the most straightforward way to satisfy the state's claim while also distributing remaining assets to the heirs. Here is what you need to know:

It is also worth knowing that Connecticut gives the state significant discretion to settle or waive recovery for good cause. If the home is modest and recovering its value would cause a surviving heir to need public benefits, the state may agree to reduce or waive the claim.

Homes that have been vacant for months or years while a loved one was in long-term care often need extra attention before they are ready to list. Maintenance may have been deferred, and the home may show the effects of time and vacancy. Here is a practical list of what to address:

• Inspect for deferred maintenance. Check the roof, gutters, HVAC system, plumbing, and electrical. A home inspection before listing can identify issues that might otherwise derail a sale later.
• Address any pest or mold issues. Vacant homes can develop moisture problems, pest infestations, or mold growth. These should be addressed before showing the home to buyers.
• Deep clean and declutter. If the home still contains personal belongings, those will need to be cleared out before the home can be shown. This is often an emotional step, so give yourself and your family time to go through items thoughtfully.
• Spruce up the curb appeal. Overgrown lawns, dead plants, and peeling paint signal neglect to buyers. A few weekends of yard work and a fresh coat of paint on the front door can make a meaningful difference.
• Ensure the utilities are on. A home with the power, water, and heat turned off cannot be properly shown or inspected. Keeping utilities active also prevents frozen pipes and other damage in colder months.

If you are unsure how to prioritize repairs or what the home might be worth in its current condition, I offer a no-obligation walkthrough for families in exactly this situation. We look at the home together, discuss what makes sense for the estate, and I share an honest market assessment -- no pressure, no commitment.

When a loved one has passed away in long-term care, the intersection of probate, Medicaid recovery, and real estate can feel like three separate worlds. The truth is, they are deeply connected, and having professionals who understand how they fit together makes all the difference.

Here is the team I recommend every family consider:

• A probate attorney who can guide you through court filings, creditor notifications, and the overall administration of the estate. If Medicaid is involved, your attorney should understand estate recovery and hardship waivers.
• A real estate agent with probate and Medicaid experience who can price the home appropriately, coordinate with the executor and attorney, and navigate the unique requirements of a probate sale.
• A tax professional who understands the tax implications of selling a home from an estate, including the stepped-up basis rules that can reduce capital gains taxes for heirs.
• An estate sale professional or organizer if the home needs to be cleared of a large volume of personal belongings before it can be sold.

Whether you are just beginning the probate process or you are already gathering documents and wondering what comes next, here is what I want you to remember:

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  Medicaid estate recovery is a creditor claim, not a seizure. The state files a claim against the probate estate, just like any other creditor. The home is not taken directly -- when it is sold, the proceeds pay the claim along with other debts.
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  Protections exist for spouses, dependents, and hardship situations. If a surviving spouse, minor child, or disabled child lives in the home, recovery is deferred or suspended. Hardship waivers are also available.
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  You can sell the home while the Medicaid claim is pending. The sale does not have to wait. The proceeds are held in the estate account until all claims are resolved.
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  The right team makes all the difference. A probate attorney who understands Medicaid, a real estate agent experienced in probate sales, and a tax professional can help you navigate this process with confidence and clarity.
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  You are not alone, and you do not have to figure this out by yourself. Thousands of Connecticut families go through this process every year. With the right information and the right people by your side, you can move through it with confidence and peace of mind.

If you have questions about your specific situation, I invite you to reach out. There is no obligation and no sales pitch -- just a conversation about your family's needs and how we can make the real estate side of this process as smooth as possible.