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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 - 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
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