Recovering MA Funds in Probate

V. Determination of Descent

A determination of descent is a specialized proceeding that can occur only when:

You, or any other interested party, may petition a court to determine the descent of the estate’s property and assign title to the correct parties under law. A court cannot issue a determination of descent, however, until a Medical Assistance Clearance Certificate for a Decree of Descent (DHS-6165B) has been filed in the proceeding. See Minnesota Statutes, section 525.312.

You process an application for a certificate of clearance by verifying whether an MA claim can be made against the estate and, if so, the amount of the claim.

A. How to process an application for a certificate of clearance for MA claims

After filing a petition for a decree of descent, the petitioner or the petitioner’s attorney must send you (the local agency where the petition is pending) a Decree of Descent Application for a Medical Assistance Clearance Certificate (DHS-6165A). Upon receiving the application, process it by following these steps and completing the Medical Assistance Clearance Certificate for a Decree of Descent (DHS-6165B):

If the certificate lists an MA claim, provide the heirs and devisees listed in the application with notice of the claim and their right to apply for an undue hardship waiver.

B. How a certificate of clearance functions as a claim

When the applicant receives the Medical Assistance Clearance Certificate for a Decree of Descent (DHS-6165B), he or she must file the certificate as part of the decree-of-descent proceedings as soon as possible. Filing a certificate with an MA claim amount has the effect of filing an MA claim that identifies you (the local agency) as the claimant. You can enforce the claim listed in the certificate only against property of the decedent that is subject to the proceedings. In addition, you may file a written statement of claim with the district court to ensure recognition of the claim.

C. Decree of descent

After the filing of the petition, the court sets a hearing date and gives notice to interested parties. Upon proof of the petition and original will (if a will exists), the claims listed in the certificate of clearance must be paid or satisfied before the court enters a decree of descent. A decree of descent assigns property free and clear of MA claims.

An MA claim in decree-of-descent proceedings may be allowed, denied and appealed in the same way as any other claim in a probate estate. You have the discretion to collect, compromise or settle a claim on whatever terms and conditions you believe are appropriate.

D. Partial decree of descent

During determination proceedings, the decedent’s heirs, devisees, successors, assigns, or their successors and assigns can apply to the court for a partial decree of descent to facilitate the good faith sale of their interest in the property described in the petition.

A partial decree of descent assigns the property described in the application to the parties entitled to it, free and clear of all MA claims. The court may enter a partial decree of descent any time after it hears and decides the petition for a determination of descent.

Net sale proceeds from the sale of the property are paid to the petitioner, who must hold them pending the entry of a decree of descent. These proceeds are used to pay MA claims before being distributed in accordance with the decree of descent.