What assets are subject to estate recovery in Pennsylvania?
Pennsylvania’s Estate Recovery Program can only reach probate assets; any non-probate assets—retirement accounts, jointly-owned property by the decedent and another, and life insurance policies paid directly to a beneficiary—will transfer outside of the estate recovery process.
Does Pennsylvania have expanded estate recovery?
Pennsylvania’s estate recovery program has collected over $500,000,000 to date! Most of the recoveries are from the sale of the homes of deceased nursing home residents, but the estate recovery program seeks payback from probate estates that exceed $2,400. There are several exceptions to the estate recovery payback.
What is the PA Estate Recovery Program?
The Estate Recovery Program allows the Commonwealth to recover Medical Assistance payments made on behalf of an individual who received long-term care Medical Assistance [including nursing facility, Home and Community Based Services (HCBS) and related services] from the time they turned 55 until their passing.
Can Medicaid Take your home after death?
The answer is that your home is not considered a “countable asset” when applying for Medicaid. As a result, in order to collect costs from the deceased persons estate, Medicaid can take your home after death. This is referred to as “estate recovery“.
What is inheritance tax in PA?
4.5%
The tax rate for Pennsylvania Inheritance Tax is 4.5% for transfers to direct descendants (lineal heirs), 12% for transfers to siblings, and 15% for transfers to other heirs (except charitable organizations, exempt institutions, and government entities that are exempt from tax).
What is probate estate?
Probate is the entire process of administering a dead person’s estate. This involves organising their money, assets and possessions and distributing them as inheritance – after paying any taxes and debts. If the deceased has left a Will, it will name someone that they’ve chosen to administer their estate.
Do you have to pay back Medicare?
The BCRC is responsible for ensuring that Medicare gets repaid for any conditional payments it makes. A conditional payment is a payment Medicare makes for services another payer may be responsible for. Medicare makes this conditional payment so you will not have to use your own money to pay the bill.
How much can you inherit in PA without paying taxes?
The federal estate tax exemption is $11.70 million in 2021 and $12.06 million in 2022. This exemption is portable. This means that with the right legal maneuvering a married couple can protect up to $22.36 million after both spouses have died. If an estate exceeds that amount, the top tax rate is 40%.