Recovering Medical Assistance (MA) Funds in Probate
III. How to initiate and administer probate to recover on an MA claim
A. Can a local county or tribal agency initiate and administer probate?
Yes. Most of the time, local agencies do not initiate probate because another party with an interest in the estate has already done so. If that has not occurred, however, you can probate a decedent’s (deceased person’s) estate to recover on a Medical Assistance (MA) claim 45 days after the decedent’s death. You can do this because your MA claim on the estate makes you an interested party, which gives you standing with the court to start the probate process.
You may have procedures to identify recently deceased MA members and pursue a claim on your own initiative. In addition, the Minnesota Department of Human Services (DHS) sends a death data match report to each agency’s MN–ITS mailbox that matches recent death certificates filed in Minnesota to MA members in the agency’s locality. Agencies that train staff to initiate and administer probate on dormant estates when appropriate may increase estate recovery substantially.
B. Deciding whether to probate
Deciding whether to probate an estate depends on a variety of factors. Ask yourself the following questions.
1. Heirs and devisees
2. Timing issues
3. Value of the estate
If the estate is insolvent, the law prioritizes payment of three kinds of expenses before MA claims. MA claims take priority after administrative expenses, reasonable funeral expenses, and debts and taxes with preference under federal law.
C. Local agency collaboration with a county attorney
With help from your county attorney, you can initiate and administer formal probate to recover on an MA claim. If you pursue an MA claim by initiating probate and becoming the personal representative of the decedent’s estate, you must administer the estate properly by doing the following:
Work with your county attorney to ensure proper estate administration and collection on an MA claim. You can provide background information and prepare court filings for the attorney to ensure efficient and accurate administration.
Find probate rules under Title V of the Minnesota General Rules of Practice for the District Courts. The Minnesota Department of Human Services also provides statewide probate forms (see section 1b).
1. Initiating formal probate
If a personal representative has not been appointed by 45 days after the decedent's death, you may seek appointment as personal representative. See Minnesota Statutes, 524.3-203, paragraph (a), clause (6).
To do this, you must go through the initial petition process to become appointed as personal representative. The process is as follows:
For a list of powers of the personal representatives, see Minnesota Statutes, 524.3-715.
Note: You may find that, after petitioning to become the personal representative, parties that chose not to become the personal representative initially may come forward and petition to be the personal representative so that you do not administer the estate. Minnesota law establishes priority of appointment for personal representatives. See Minnesota Statutes, 524.3-203. As a creditor for an MA claim amount, you have sixth priority in the statute.
a. Information needed to file a probate
Collect the following information to file for a probate proceeding:
b. Forms to initiate probate
Collect all needed forms. The following forms are typically needed when beginning probate:
2. Administering formal probate
If you are appointed personal representative, you have several responsibilities at the outset of probate. You must give notice to the commissioner of human services; perform a reasonable, diligent search for creditors; give supplemental notice to creditors; compile an inventory; and determine distributions required under law. Throughout administration, keep proper records of every transaction during the administration, including all receipts and payments.
a. Notice to the commissioner
As soon as possible after being appointed, send a notice to the commissioner to DHS.
In response to this notice, DHS sends a letter to (1) the personal representative or the estate’s attorney; (2) you (the local agency in the county where probate has been opened); and (3) if MA was received, the decedent’s local agency of financial responsibility (if it is a county other than the probate county). The DHS letter states whether there is an MA claim for services received by the person or people named in the notice. If there is a claim, you and any other agency of financial responsibility will receive an MA claims-payment history with the letter. See MA claims payment histories for more information.
To designate yourself as your agency’s contact for DHS response letters, send an email titled “Notice to Commissioner Contact” with your name, address, email address, and phone number to DHS.SRUfax@state.mn.us.
b. Reasonable, diligent search for creditors
Within three months after the date of first publication of notice, conduct a reasonable, diligent search for the decedent’s unknown or unidentified creditors.
c. Notice to creditors
In addition, within three months after the date of first publication of notice to creditors, serve a copy of the notice upon each of the decedent’s then known and identified creditors.
In addition, as the personal representative, you must give supplemental notice that any claims creditors have against the estate will be barred unless creditors present those claims within four months after the date of first publication of the notice or one month after service of the supplementary notice.
d. Inventory
You have six months after appointment as personal representative, or nine months after the decedent’s death, whichever is later, to file or mail an inventory and appraisement. An inventory gives interested parties a description and the fair market value of each probate asset the decedent owned at time of death. It also describes any debts the decedent had at time of death, including the amount of each debt. Refer to Minnesota Statutes, 524.3-706 through 524.3-708, for instructions on how to file and serve an inventory.
Mail or deliver the inventory to (1) all residuary distributees (parties who receive what’s left) and (2) any interested persons, including creditors, who have requested a copy of the inventory. Send all parties a supplementary or amended inventory if you discover more probate property that you did not include in the original inventory, or if you did not accurately describe the value of an asset in your original inventory.
3. Closing formal probate
To close probate, file the following forms, as applicable:
The Minnesota Judicial Branch provides statewide court forms for closing probate on its website.
Report this page