When Policies Change, So Should Your Estate Plan.
The One Big Beautiful Bill Act (OBBBA) overhaul of Medicaid, State budget revisions, and changing tax laws aren’t just headlines; they’re triggers that can reshape the legal and financial landscape of your estate plan. When the rules change, so do the risks. Your estate plan must be adaptable to safeguard your assets, care, and loved ones.
OBBBA has at least 20 major changes to Medicaid
The One Big Beautiful Bill Act includes at least 20 major changes to Medicaid, making it the most sweeping overhaul of the program since its inception. This posting will address how Estate Recovery is one of the Medicaid policies that now applies to assets that were previously exempt during eligibility.
What was once a sanctuary—your home—may now be subject to Medicaid’s estate recovery, a policy that quietly reaches beyond eligibility to reclaim value. According to the most recent data, 24 states, including Wisconsin, have adopted expanded Medicaid estate recovery rules.
Wisconsin Estate Recovery Program
Wisconsin’s Estate Recovery Program seeks repayment for Medicaid-funded long-term care services after a member’s death.
- Homes are subject to recovery if the Medicaid recipient received long-term care services and:
- Was age 55 or older
- Received services through programs like Family Care, IRIS, or PACE
- Life estates created on or after August 1, 2014, are also subject to recovery. This means even partial ownership retained by the Medicaid recipient can be used to satisfy estate recovery claims.
- Liens may be placed on homes of institutionalized members (e.g., nursing home residents).
- Recovery applies to both probate and non-probate assets, including jointly held property, revocable trusts, and homes transferred via life estate or survivorship arrangements.
What This Means for Individuals and Families:
Without a clear understanding of Medicaid’s sweeping changes and a properly aligned estate plan, your family home may be exposed to state recovery efforts, even if it was previously considered exempt.
To avoid unintended consequences, the Elder Advisors Law team strongly recommends consulting your attorney before making decisions about changes to Medicaid or estate planning. Overlooking key details could put your home and more at risk.
Confidence Starts with a Conversation
We welcome the opportunity to assist you with any questions you may have. Please feel free to reach out to us by phone or join one of our free workshops for valuable insights and personalized guidance.
Free Workshops
Elder Advisors Law workshops in Janesville and Wales, Wisconsin, are free. Creating an inviting and relaxed environment for attendees, these sessions deliver practical and actionable advice on safeguarding your well-being, preserving your assets, protecting your estate, and ensuring a lasting legacy for your loved ones.
