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Minnesota Department of Human Services MA Estate Recovery Manual
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II. Notices of Potential Claim

A notice of potential claim (NPC) is a lien filed against an MA member’s real property interest to secure repayment of MA costs subject to estate recovery. DHS files an NPC in the real estate records for the county in which the property it describes is located. See Minnesota Statutes, section 256B.15, subdivision 1c.

A. When can DHS file an NPC?

DHS can file an NPC before, or within one year after, an MA member’s death. However, an NPC is not a lien until the MA member dies. Until the MA member dies, an NPC serves only as notice that an MA estate claim can be made against a specific interest in real property.

If you learn of a real property interest belonging to a deceased MA member who received services at 55 years old or older, email a Referral for an MA Lien or Notice of Potential Claim (DHS-3203) (PDF) to DHS as soon as possible. Do not wait to send the referral simply because DHS has one year after the MA member’s death to file the lien. Sooner is always better.

B. Life estates and joint tenancy interests in real property

If a person owns a life estate or a joint tenancy interest in real property when he or she dies, and the interest was established on or after August 1, 2003, that interest remains subject to a lien after death to satisfy repayment of MA. Recovery on a life estate is limited to the value of the person's interest on the date of death as determined by the Life Estates Mortality Table found in the Eligibility Policy Manual for Minnesota Health Care Programs.

C. Exceptions

When any of the below exceptions applies to an NPC, DHS can file the lien but it cannot collect on the lien until (1) the MA member dies and (2) the exception is no longer in effect. However, even if any of the below exceptions applies, email DHS a Referral for an MA Lien or Notice of Potential Claim (DHS-3203) (PDF) when you learn of a real property interest belonging to a deceased MA member who received services at 55 years old or older.

Real property is exempt from an NPC if the real property is the homestead of one or more of the following people:

  • • An MA member’s spouse
  • • An MA member’s child who is younger than age 21
  • • An MA member’s child of any age who is blind or totally and permanently disabled according to Supplemental Security Income program criteria
  • • An MA member’s child or grandchild of any age who:
  • • lived on the property for at least two years before the member began receiving institutional care,
  • • has continuously lived on the property since the member’s date of institutionalization, and
  • • provided care that allowed the member to remain in the community
  • • An MA member’s sibling who:
  • • resided in the home for at least one year before the member began receiving institutional care and
  • • has continuously lived on the property since the member’s date of institutionalization
  • D. How long does an NPC last?

    NPCs are enforceable for 20 years from the date of filing, or from the date of the MA member’s death, whichever is later.

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    © 2017 Minnesota Department of Human Services Updated: 3/13/17 12:52 PM | Accessibility | Terms/Policy | Contact DHS | Top of Page | Updated: 3/13/17 12:52 PM