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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN 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 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