Many Washington residents assume that once Medicaid covers long-term care costs, the matter is settled. It is not. Washington State operates a Medicaid Estate Recovery Program, commonly called MERP, which allows the state to seek reimbursement from a deceased person’s estate for certain Medicaid benefits paid on their behalf. For families who were counting on inheriting a home or other assets, this can come as a serious shock.
How Washington’s MERP Works
Under Washington law, the Department of Social and Health Services (DSHS) can file a claim against a deceased Medicaid recipient’s estate. This most commonly applies to individuals who received:
- Long-term care services through Medicaid
- Home and community-based waiver services
- Care in a nursing facility or adult family home
- Services through the state’s Apple Health long-term services and supports program
The claim is typically filed during probate. If the estate includes a home, that home may need to be sold to satisfy the state’s debt before any inheritance passes to surviving family members. Washington’s MERP rules apply to recipients age 55 and older and are administered through DSHS. The Washington DSHS estate recovery program outlines who qualifies and how claims are processed.
When Recovery Can Be Delayed or Waived
MERP does not always result in an immediate claim. Washington allows for certain hardship waivers and recovery deferrals. Recovery is typically deferred when a surviving spouse is still living, when a surviving child under age 21 is still living, or when a surviving child who is blind or permanently disabled is still living.
Once those protected survivors pass away or the property changes hands, MERP may still pursue reimbursement. The delay does not mean the debt disappears.
Hardship waivers are also available in limited situations, but they require a formal application and approval from DSHS. They are not guaranteed. An Issaquah estate planning lawyer with a background in tax and asset planning can help you understand how MERP may apply to your situation and whether your current plan adequately addresses it.
What This Means for Your Estate Plan
This is exactly why working with an Issaquah estate planning lawyer matters before a long-term care situation arises, not after. Proactive planning gives families far more options. A revocable living trust, for example, does not automatically protect assets from MERP because Washington includes trust assets within its recovery definition. Other planning strategies may reduce exposure depending on the timing and structure of the plan. Washington’s rules around MERP and trusts are specific, and the wrong approach can make things worse.
Protecting Your Family Starts Early
The most common mistake families make is waiting too long. By the time someone is already receiving Medicaid-funded care, many planning options are no longer available due to Medicaid’s look-back period. Washington follows a 60-month look-back window, meaning transfers made within five years of applying for Medicaid long-term care benefits can be counted against eligibility.
Early planning is not about avoiding legal obligations. It is about understanding the rules thoroughly and making informed decisions for your family while options are still available. Eastside Estate Planning works with Washington families to build estate plans that account for real-world concerns, including Medicaid estate recovery. If your estate plan was drafted years ago or does not address long-term care at all, reach out today to schedule a time to talk through your options.
