Connecticut Medicaid Estate Recovery
After someone who received Medicaid long-term care dies, Connecticut can file a claim against their estate. This guide explains what is recovered, who is protected, and how to ask for relief.
Based on Conn. Gen. Stat. section 17b-95 (claim of state on death of a Medicaid beneficiary for amounts due under federal law; priority of claims); section 17b-93 (no recovery of properly paid assistance, by lien or by claim, unless federal law requires it, on and after July 1, 2022); section 17b-96 (the Attorney General collects the state's claim and no statute of limitations applies); section 17b-79 (limits on real property liens); section 4a-16 (the Commissioner of Administrative Services becomes legal representative of a small estate to collect); section 45a-273 (small-estate affidavit must state whether the decedent received state aid, and the court sends it to the Department of Administrative Services); federal baseline 42 U.S.C. 1396p(b).
What Connecticut recovers
Connecticut recovers what Medicaid actually paid for the person who died, and only out of the estate that passes through Probate Court.
Covered services and programsThe full list of care and waiver programs the claim can include
Connecticut recovers what Medicaid actually paid for the person who died, and only out of the estate that passes through Probate Court. Two recent laws narrowed the claim sharply. Conn. Gen. Stat. section 17b-93(a) says that on and after July 1, 2022 the state shall not recover properly paid cash assistance or medical assistance, by a lien on real property or by a claim against property, a property interest or an estate of any kind, unless federal law requires the recovery, and it deems liens and claims filed before that date released when federal law does not require them. Conn. Gen. Stat. section 17b-95(a) then gives the state a claim against a deceased Medicaid beneficiary's estate for the amounts paid that the state has not been reimbursed for and that federal law requires it to recover, and it caps that claim so the state takes only the part a surviving spouse, parent or dependent child does not need for support. Cash assistance such as temporary family assistance, the state supplement program and state-administered general assistance is no longer recoverable at all. The Department of Social Services sets the policy, but the estate claim is filed and collected by the Department of Administrative Services, and under section 17b-96 the Attorney General collects the state's claim and no statute of limitations applies to that action. Under section 17b-95(b) the claim outranks every other unsecured claim except expenses of the last sickness up to $375, funeral and burial expenses under sections 17b-84 and 17b-131, and administration expenses including probate fees, taxes and fiduciary fees at 5 per cent of the first $2,000, 4 per cent of the next $8,000 and 3 per cent above $10,000, with the Probate Court free to allow more for extraordinary services after a hearing the Commissioner of Administrative Services gets ten days' notice of.
Connecticut 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.
Important: Two things keep probate-only from meaning the claim can always be sidestepped. First, Conn. Gen. Stat. section 17b-95(c) reaches outside probate for annuities: every sum due on or after July 1, 2003 to any person after a Medicaid beneficiary's death under an annuity contract bought at any time with that beneficiary's assets is deemed part of the estate, and the person receiving those annuity payments is personally liable to the state up to what they receive. Second, keeping an estate out of Probate Court does not end the claim, because section 45a-273 makes a small-estate affidavit disclose whether the decedent received state aid and routes a copy to the Department of Administrative Services, and section 4a-16 lets that department have itself appointed legal representative of a small estate and settle it. Confirm your own situation with a Connecticut elder law attorney.
55 and older for Medicaid services received on or after October 1, 1993, and 65 and older for services received before that date, which tracks the federal baseline at 42 U.S.C. 1396p(b)(1)(B). There is no age floor for someone who was institutionalized, and Uniform Policy Manual 7525.10 B counts a recipient of home and community-based waiver services as institutionalized for this purpose. Because Conn. Gen. Stat. sections 17b-93(a) and 17b-95(a) now limit the claim to what federal law requires the state to recover, recovery against a person 55 or older reaches nursing facility services, home and community-based services and the related hospital and prescription drug services that 42 U.S.C. 1396p(b)(1)(B)(i) makes mandatory, not every Medicaid service.
Who is protected from recovery
Surviving spouse: the state collects only after the death of the beneficiary's surviving spouse (Uniform Policy Manual 7525.10 A and B, matching the federal bar at 42 U.S.C. 1396p(b)(2)), so a spouse delays the claim rather than cancelling it.
Surviving child under 21: no recovery while the person who died leaves a child under the age of 21 (Uniform Policy Manual 7525.10 A and B; 42 U.S.C. 1396p(b)(2)(A)).
Surviving child who is blind or has a disability: no recovery while such a child survives, whatever that child's age (Uniform Policy Manual 7525.10 A and B; 42 U.S.C. 1396p(b)(2)(A)).
Family who depended on the person for support: Conn. Gen. Stat. section 17b-95(a) limits the state's claim to the part of the estate that a surviving spouse, parent or dependent child of the decedent does not need for their support.
An heir who lives in the home: Connecticut protects the house through its undue-hardship rules rather than through a lien. Under Uniform Policy Manual 7525.10 H.2.b an heir can ask for relief when the estate includes the home the person lived in for at least two years before applying for Medicaid or entering a nursing facility, the heir was living there continuously for at least twelve months before the death and still lives there as a sole residence, the heir would otherwise inherit it, and the heir cannot afford comparable housing. Relief is presumed unavailable when the heir's income tops three times the medically needy income limit.
An heir impoverished by the death: Uniform Policy Manual 7525.10 H.2.a grants relief to someone who depended on the person who died for support and is impoverished by that death, tested against income below twice the medically needy income limit with assets under $2,000 for a single applicant, or under $3,000 for an applicant living with a spouse.
No Medicaid lien on the home during life: Conn. Gen. Stat. section 17b-79(b) bars recovery by a lien on real property unless federal law requires it and deems earlier liens released, and Department of Social Services form W-1659 tells applicants the department will not place a lien on your house. Because Connecticut imposes no such lien, the federal sibling-with-equity and caregiver-child protections at 42 U.S.C. 1396p(b)(2)(B), which limit collection on a lien, have nothing to attach to. A sibling or a caregiver child living in the home applies under the hardship residency ground above instead.
Undue hardship waiver: any heir under a will, or any survivor entitled to a share of an intestate estate, may apply in writing to the Estate Administrator at the Department of Administrative Services within 45 days after the state notifies the estate fiduciary that hardship relief is available (Uniform Policy Manual 7525.10 G through K).
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Property that may be exempt
- Anything that passes outside probate. Conn. Gen. Stat. section 17b-95(a) gives the state a claim against the deceased beneficiary's estate, and section 17b-93(a) allows a claim against property, a property interest or an estate only where federal law requires it. Federal law requires recovery from the probate estate at 42 U.S.C. 1396p(b)(4)(A) and leaves the wider definition at 42 U.S.C. 1396p(b)(4)(B) to state option. Connecticut never enacted that option, so the claim does not follow property to a survivor by title alone.
- Real property held in joint tenancy with right of survivorship, and a home held with a spouse that passes to the survivor by operation of law, because title moves at death without a Probate Court decree. Conn. Gen. Stat. section 45a-273(a) uses the same line, excluding property that passes outside of probate by operation of law from the small-estate total.
- A life estate that ends at death, because the remainder interest vests outside the estate that the state's claim reaches.
- Property titled in a revocable living trust, which passes under the trust rather than through the estate. Neither chapter 319s nor chapter 319v of the General Statutes reaches a living trust, a life estate, a joint tenancy or a survivorship arrangement for recovery purposes.
- Bank and investment accounts with a payable-on-death or transfer-on-death beneficiary, and life insurance or retirement accounts payable to a named surviving beneficiary.
- Money invested in an individual ABLE account established under Conn. Gen. Stat. section 3-39k, which section 17b-95(a) carves out of the state's claim to the extent federal law permits.
- Assets that were disregarded at eligibility because a precertified Connecticut long-term care partnership insurance policy paid for covered services, and payments received under the Ricky Ray Hemophilia Relief Fund Act (Uniform Policy Manual 7525.10 F).
- Amounts paid ahead of the state under Conn. Gen. Stat. section 17b-95(b): expenses of the last sickness up to $375, funeral and burial expenses under sections 17b-84 and 17b-131, each capped at $1,800 and reduced by any prepaid funeral money, and administration expenses including probate fees, taxes and fiduciary fees.
- Properly paid cash assistance. Since July 1, 2022 Conn. Gen. Stat. section 17b-93(a) bars recovery of temporary family assistance, state supplement, state-administered general assistance and aid to families with dependent children benefits, and deems any lien or claim filed for them before that date released.
- Estates too small to be worth pursuing. Under Uniform Policy Manual 7525.10 K the unit that files the claim does not pursue recovery when the estate lacks the resources to make collection worthwhile, and pursues it when it can collect $100 or more.
Undue-hardship waiver
Connecticut can waive recovery when it would cause an undue hardship for the heirs. Contact Connecticut Department of Administrative Services, Collection Services (Recovery Unit) at 860-713-5400 to request the waiver and confirm deadlines.
Hardship waiver informationFrequently asked questions
Who is protected from Medicaid estate recovery in Connecticut?
What does Connecticut Medicaid recover after death?
Can I apply for an undue-hardship waiver in Connecticut?
Who handles Medicaid estate recovery in Connecticut?
Agency and statute sourcesOfficial references used for this page
- Conn. Gen. Stat. section 17b-95 (the state's claim against a deceased Medicaid beneficiary's estate, limited to what federal law requires, and the order in which the claim is paid)
- Conn. Gen. Stat. section 17b-93 (on and after July 1, 2022 no recovery of properly paid cash or medical assistance by lien or claim unless federal law requires it; earlier liens and claims deemed released)
- Conn. Gen. Stat. section 17b-96 (the Attorney General collects the state's claim; the statute of limitations does not apply to that action)
- Conn. Gen. Stat. section 17b-79 (no recovery of cash or medical assistance from a lien on real property unless federal law requires it; liens filed before July 1, 2021 deemed released)
- Conn. Gen. Stat. section 17b-84 (funeral and burial allowance of not more than $1,800, reduced by prepaid funeral money and estate liquid assets)
- Conn. Gen. Stat. section 17b-131 (funeral and burial allowance of not more than $1,800 for an indigent person or a state-administered general assistance beneficiary)
- Conn. Gen. Stat. section 4a-16 (the Commissioner of Administrative Services notifies next of kin, is appointed legal representative of a small estate, and settles it for amounts due under federal law or section 17b-93)
- Conn. Gen. Stat. section 4a-12 (the Commissioner of Administrative Services performs collection services and bills and collects money due the state in public assistance cases)
- Conn. Gen. Stat. section 45a-273 (settlement of an estate of $40,000 or less on affidavit, excluding property that passes outside probate; affidavit must state whether the decedent received state aid; court sends a copy to the Department of Administrative Services and waits 30 days)
- Conn. Gen. Stat. section 45a-365 (general order of payment in a decedent's estate; claims due the state of Connecticut rank fourth)
- Conn. Gen. Stat. section 45a-356 (150 days from the appointment of the first fiduciary to present a claim, and the fiduciary's protection after that)
- 42 U.S.C. 1396p (the federal Medicaid estate recovery baseline: the age 55 rule, the surviving spouse and child bars, the sibling and caregiver-child lien protections, the undue-hardship waiver, the mandatory probate-estate definition at subsection (b)(4)(A) and the optional wider definition at subsection (b)(4)(B) that Connecticut did not adopt)
- Connecticut Department of Social Services, Uniform Policy Manual 7525.10, "Recovery of Medicaid from Estates" (age rules, the surviving spouse and child bars, the long-term care partnership and Ricky Ray exclusions, and the undue-hardship relief criteria and application process)
- Connecticut Department of Social Services, Uniform Policy Manual (index of chapters, including UPM7 Benefit Error and Recovery)
- Connecticut Department of Administrative Services, DAS Collection Services Laws/Regulations (the department's own list of the statutes governing its collections, naming sections 4a-12, 4a-16, 17b-95, 17b-230 and 17b-265)
- Connecticut Department of Administrative Services, DAS Collection Services Contact (Collections Recovery 860-713-5400; mail to Department of Administrative Services Collection Services, PO Box 601, Manchester CT 06045)
- Connecticut Department of Administrative Services, Collections (billing, recovery, delinquent accounts and the state tax intercept program)
- Connecticut Department of Social Services form W-1659 (Rev. 07/22), long-term services and supports Medicaid questions and answers, which states at question 10 that the department will not place a lien on your house
Information current as of August 1, 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 Connecticut can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.