Arkansas Medicaid Estate Recovery
After someone who received Medicaid long-term care dies, Arkansas can file a claim against their estate. This guide explains what is recovered, who is protected, and how to ask for relief.
Based on Ark. Code Ann. 20-76-436 (Recovery of benefits from recipients' estates); implementing rule Ark. Admin. Code 016.20.96-005 (Procedures Regarding the Recovery of Medical Payments from the Estates of Deceased Individuals)
What Arkansas recovers
DHS files a claim against the deceased recipient's probate estate for the total amount Medicaid paid for the recipient's long-term care services (nursing home, ICF/IID, or home and community-based waiver services) received at or after age 55, or at any age if the recipient was permanently institutionalized. The claim is capped at what Medicaid actually paid; if the claim exceeds the estate's value, heirs are not liable for the balance.
Arkansas recovers only from the probate estate. Assets that pass outside probate, such as joint property with survivorship, life estates, living trusts, and transfer-on-death or pay-on-death accounts, are generally beyond recovery.
55. Recovery applies to long-term care services received at age 55 or older, the federal minimum under 42 U.S.C. 1396p(b). It also applies at any age to recipients who were permanently institutionalized in a nursing home or ICF/IID.
Who is protected from recovery
No recovery while a surviving spouse is alive
No recovery while there is a surviving child under age 21
No recovery while there is a surviving child of any age who is blind or disabled (the child need not have lived with or been dependent on the recipient at death)
Undue hardship waiver granted by the DHS Hardship Waiver Committee (for example, the estate asset is the sole income-producing asset of beneficiaries, or is a home valued at 50 percent or less of the county average home price, or recovery would cause a beneficiary to become eligible for public benefits)
Recovery is not cost effective (the amount recoverable does not exceed the cost of recovery)
QMB and other Medicare Savings Program recipients are not subject, because those categories do not pay for long-term care services
Recipients under age 55 whose nursing-home stay is temporary and who are not permanently institutionalized are not subject
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Property that may be exempt
- Non-probate assets that pass directly to a beneficiary outside probate, including life insurance proceeds, retirement accounts such as IRAs, pension plans, mutual funds, and deferred compensation plans
- The home when a son or daughter currently lives there and lived in the home for at least two years before the recipient entered the nursing home and provided care that allowed the recipient to stay home longer
- The home when a brother or sister currently lives there and lived in the home for at least one year before the recipient entered the nursing home
- Assets disregarded under a Qualified Long-Term Care Insurance Partnership Policy that remain at the policyholder's death
Undue-hardship waiver
Arkansas can waive recovery when it would cause an undue hardship for the heirs. Contact Arkansas Department of Human Services (DHS), Office of Chief Counsel (Decedents' Estates Unit) to request the waiver and confirm deadlines.
Hardship waiver informationFrequently asked questions
Who is protected from Medicaid estate recovery in Arkansas?
What does Arkansas Medicaid recover after death?
Can I apply for an undue-hardship waiver in Arkansas?
Who handles Medicaid estate recovery in Arkansas?
Agency and statute sourcesOfficial references used for this page
- Arkansas DHS, Your Guide to Medicaid Estate Recovery in Arkansas (PUB 428, rev. 1/10)
- Ark. Admin. Code 016.20.96-005, Procedures Regarding the Recovery of Medical Payments from the Estates of Deceased Individuals (implements Ark. Code Ann. 20-76-436), via Cornell LII
- 20-76-436 - Recovery of benefits from recipients' estates
Information current as of June 28, 2026
Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in Arkansas can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.