2005 Legislation
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SENATE BILL NO. 1087 – Medical assistnce, recovery, estate

SENATE BILL NO. 1087

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Bill Status



S1087.................................................by HEALTH AND WELFARE
MEDICAL ASSISTANCE - Amends existing law relating to administration
procedures for small estates to specify the powers of the Director of the
Department of Health and Welfare to be considered a successor of the
decedent for recovery of medical assistance.
                                                                        
02/03    Senate intro - 1st rdg - to printing
02/04    Rpt prt - to Health/Wel

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1087
                                                                        
                              BY HEALTH AND WELFARE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO ADMINISTRATION  PROCEDURE  FOR  SMALL  ESTATES;  AMENDING  SECTION
  3        15-3-1201,  IDAHO  CODE,  TO  SPECIFY  THE  POWERS  OF THE DIRECTOR OF THE
  4        DEPARTMENT OF HEALTH AND WELFARE TO BE CONSIDERED A SUCCESSOR OF THE DECE-
  5        DENT FOR RECOVERY OF MEDICAL ASSISTANCE.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Section 15-3-1201, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        15-3-1201.  COLLECTION OF PERSONAL PROPERTY BY AFFIDAVIT. (a) Thirty  (30)
 10    days  after  the  death  of a decedent, any person indebted to the decedent or
 11    having possession of tangible personal property or an instrument evidencing  a
 12    debt,  obligation,  stock  or  chose in action belonging to the decedent shall
 13    make payment of the indebtedness or deliver the tangible personal property  or
 14    an  instrument  evidencing  a  debt, obligation, stock or chose in action to a
 15    person or entity claiming to be the successor of the decedent upon being  pre-
 16    sented an affidavit made by or on behalf of the successor stating that:
 17        (1)  the  fair  market value of the entire estate of the decedent which is
 18        subject to probate, wherever located, less liens  and  encumbrances,  does
 19        not exceed seventy-five thousand dollars ($75,000);
 20        (2)  thirty (30) days have elapsed since the death of the decedent;
 21        (3)  no  application  or petition for the appointment of a personal repre-
 22        sentative or for summary administration is pending or has been granted  in
 23        any jurisdiction; and
 24        (4)  the  claiming  successor  is  entitled  to payment or delivery of the
 25        property, including entitlement as a trust pursuant to a will of the dece-
 26        dent.
 27        (b)  A transfer agent of any security shall change the  registered  owner-
 28    ship  on the books of a corporation from the decedent to the successor or suc-
 29    cessors upon the presentation of an affidavit as provided in subsection (a) of
 30    this section.
 31        (c)  For the recovery of medical assistance as provided in section 56-218,
 32    Idaho Code, the director of the department of health and welfare shall be con-
 33    sidered a successor of the decedent for the purposes of this section.

Statement of Purpose / Fiscal Impact


                   STATEMENT OF PURPOSE

                          RS 14492

Idaho Code 56-218 provides for the recovery of medical 
assistance (Medicaid) payments made after the recipient reaches 
age 55, from the probate estate of the Medicaid recipient and 
the recipient's spouse.  Recovery is made only after the death 
of both spouses and only when there is no minor or disabled 
child.  Recovery is made through the probate estate process, but 
can be made from all of the couple's assets, including those 
assets otherwise passing outside probate through trusts, life 
estates, and similar arrangements.  In small estates, Idaho Code 
15 3 1201 allows a "successor" to collect the personal property, 
including money, of a decedent by use of a small estate 
affidavit.  However, creditors, such as the Department, are not 
considered "successors" under the probate code.  This amendment 
allows the Department to be considered a “successor” and use the 
small estate affidavit to recover funds from financial accounts 
such as the decedent’s nursing home trust account and checking 
account.  Anyone claiming a higher priority is protected by 
existing law because the person collecting funds through the 
small estate affidavit must account for those funds to any 
personal representative or person with a higher priority.


                         FISCAL NOTE

Estimated positive impact of $50,000.



CONTACT
Name:	Leslie Clement
Agency:	Health and Welfare
Phone:	364-1804

Statement of Purpose/Fiscal Note                     S 1087