How to Avoid Medicaid Estate Recovery in Massachusetts [2026]

When someone who is a Medicaid member over the age of 55 passes away, Medicaid recovery acts as a way to recover costs. When you are trying to figure out how to avoid Medicaid estate recovery in Massachusetts, navigating Massachusetts Medicaid planning laws on your own can be daunting. Our Medicaid planning attorney at Albanese Law, LLC, can help with your Medicaid planning case.

What Is Medicaid Estate Recovery?

The Massachusetts Medicaid Estate Recovery Program (MERP) is a MassHealth initiative that seeks reimbursement from the probate estates of deceased members, aged 55 or older, who received long-term care or other services. MERP acts to repay the state for care costs using assets passing through probate, such as a home.

Assets subject to MERP include:

• Real estate: The primary home, vacation homes, or vacant land held in the deceased’s name
• Bank accounts: Savings, checking, and certificates of deposit (CDs)
• Financial portfolios: Investment accounts and stocks
• Vehicles: Cars, trucks, or boats
• Personal property: Household furniture and furnishings

Assets must pass through probate to be recovered. Property held in a trust or with a named beneficiary is generally protected. Furthermore, only estates with a probate value exceeding $25,000 are subject to recovery, and spousal protection is available if a spouse is still living. MERP can be intimidating, but with the help of an estate planning lawyer, there are ways to avoid it with early intervention.

How to Avoid Medicaid Estate Recovery in Massachusetts

To protect assets from MERP, key strategies include establishing irrevocable income-only trusts, utilizing life estate deeds, and gifting assets earlier than the commencement of a lookback period before applying for benefits. If you have not yet thought about estate planning tools such as trusts, you are not alone. In the United States, approximately 13% of adults report having a living trust, with even fewer having other types of estate planning documentation. Acting now is key.

Key strategies to avoid MassHealth estate recovery include:

• Irrevocable trusts: Placing assets into an irrevocable trust removes them from your estate, meaning they are not subject to recovery after your death.
• Life estates: A deed that gives you the right to live in the home for life, but transfers ownership to beneficiaries upon death, removes the home from probate, and protects it from recovery.
• Transfer to spouse: Transferring the home or other assets solely into the name of a healthy spouse can protect the assets, as recovery usually only happens after both spouses have passed.
• Exempt transfers: Assets can be transferred without penalty to a disabled child or to a sibling who has lived in the home and holds an equity interest.
• Lady Bird Deed (enhanced life estate deed): This allows you to retain ownership during your lifetime, but automatically transfers the property upon death, bypassing probate and avoiding MassHealth liens.

Another way to avoid MERP is through the use of available exemptions and waivers. MassHealth estate recovery can be avoided or limited through exemptions for small estates under $25,000, specific beneficiary protections (such as surviving spouse and minor/disabled children), and undue hardship.

Negotiating or Challenging Medicaid Recovery

With about two in seven people enrolled in the program, Medicaid is one of the largest health insurers in Massachusetts, and trying to negotiate or challenge MERP on your own can be difficult. When you have a Medicaid planning case with legal complexities, it can be helpful to speak with a knowledgeable Medicaid planning attorney to figure out your options. You may be able to negotiate or challenge MERP, but legal counsel is recommended.

Negotiating or challenging Medicaid recovery involves auditing liens for accuracy, applying legal precedents, such as Ahlborn v. Arkansas DHS and Wos v. EMA, to limit recovery to medical expenses, and requesting waivers for financial hardship. Key strategies include identifying unrelated charges, negotiating pro-rata attorney fees, and submitting written evidence of hardship to reduce the calculated amount.

Hire a Medicaid Planning Lawyer

At Albanese Law, LLC, we have extensive Medicaid planning experience. When you hire a Medicaid planning lawyer at our firm, you are hiring a Medicaid planning attorney who offers compassionate and trustworthy service. If you are trying to figure out how to avoid Medicaid estate recovery in Massachusetts, we can help.

We also understand the court system, and we understand how stressful probate can be. Whether your case goes through the Suffolk Probate and Family Court, Bristol County Probate and Family Court, or another Massachusetts probate court location, our legal team is ready to assist with every step of the process, meeting all important deadlines and requirements.

Trying to navigate Massachusetts Medicaid planning laws at the time of a loved one’s passing can be overwhelming, and trying to protect your assets on your own can be stressful. Instead of trying to handle everything on your own, seeking out legal counsel can lift a significant burden off your shoulders. You can have peace of mind knowing that we can handle all of the legalities.

FAQs

When Should I Contact a Medicaid Planning Attorney?

You should contact a Medicaid planning attorney as soon as you anticipate needing long-term care, which may be when your assets are at their highest value or when facing a Medicaid crisis, such as nursing home placement, to protect assets from depletion. Early planning helps legally restructure assets to meet eligibility, often saving significant funds.

Can My Family Sell My Assets Before Medicaid Estate Recovery Occurs?

Your family can sell your assets, but doing so before Medicaid estate recovery often triggers strict rules, including a five-year Look-Back Period, potential disqualification, and the need to pay off Medicaid liens. Selling assets, especially a home, requires careful planning to avoid penalties, as proceeds often become countable assets that could disqualify you from benefits.

Do I Have to Wait for Medicaid Estate Recovery?

In Massachusetts, MassHealth estate recovery is subject to a statute of limitations, which dictates a deadline for filing. However, while this deadline may provide finality to the estate, the timeline for your particular probate process depends on the complexity of the estate and your individual circumstances. An experienced Medicaid estate recovery lawyer can help you assess how long your recovery could take.

What Is the Look-Back Period?

The Medicaid Look-Back Period is a period of review of an applicant’s financial records to identify any assets sold or gifted for less than fair market value. Used for long-term care eligibility, this rule exists so applicants do not transfer assets to qualify for Medicaid, potentially causing a penalty period. During the penalty period, Medicaid will not pay for services.

Schedule Your Free Consultation Today

When you are trying to figure out how to avoid Medicaid estate recovery in Massachusetts, you need a Medicaid planning attorney at Albanese Law, LLC, to help you with your Medicaid planning case. Using our years of extensive estate planning experience, we can help you protect your assets and plan for tomorrow. Contact us to schedule your free consultation today.