If you anticipate probating a will after September 1, 2019, you should be aware that Alabama Medicaid has ramped up its efforts to recover costs from the estates of decedents to whom the agency provided certain benefits during the decedent's lifetime.
The Alabama Legislature passed ACT #2019-489, which became effective September 1, 2019 and requires that notice be given to Alabama Medicaid of every decedent’s estate, including summary distributions, opened on or after that date. The notice to be given Alabama Medicaid must be given in a precise manner and include substantial information about the decedent.
Alabama Medicaid must respond to a notice within 30 days. Alabama Medicaid may file a claim, waiver of claim, or statement that no claim exists with the probate court. If Alabama Medicaid does not file a response within 30 days, it waives its claim.
While waiting on a response from Alabama Medicaid, the personal representative or administrator may not pay the debts of the sixth order of preference as defined in Ala. Code § 43-2-371, nor may any distributions be made, until proof of notice has been filed in the probate court and 30 days have passed since Medicaid received notice.
The Alabama Family Trust has created sample forms that may be used to accomplish the reporting requirements of the Act. See https://www.alabamafamilytrust.com/wp-content/uploads/2019/08/Medicaid-Notice-and-Affidavit-8-16-2019.pdf.
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