Wisconsin's Medicaid Estate Recovery Program allows the state to recover costs of Medicaid-funded long-term care from a deceased recipient's estate. Understanding these rules is crucial for protecting family assets.
What is recovered: Wisconsin can seek recovery from the estate for Medicaid-funded nursing home care, home and community-based waiver services, and related hospital and prescription drug services provided after age 55.
What assets are at risk: The estate includes all probate assets — real estate, bank accounts, investments, and personal property owned at death. Wisconsin also recovers from non-probate assets like jointly owned property and life estates.
Protections:
Recovery is deferred while a surviving spouse is alive. It is also deferred if there is a surviving child under 21 or a blind or disabled child of any age.
Hardship waivers: Wisconsin allows hardship waivers when recovery would deprive a family member of their primary residence, when the estate is below a certain threshold, or in other circumstances demonstrating undue hardship.
Planning strategies: Consider irrevocable trusts (but be aware of the 5-year look-back period), proper homestead protections, and caregiver agreements. Life insurance payable to named beneficiaries (not the estate) is generally protected.
Consult an elder law attorney well before applying for Medicaid to implement asset protection strategies within legal boundaries.