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Medicaid Recovery Question - Illiniois Illinois

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  • Medicaid Recovery Question - Illiniois Illinois

    We got a form letter today from State of Illinois asking how much money our mom had date of death. She was on medicaid and in a nursing home for about a year (60k) the state is inquiring us for what assets she had and inquiring about a "possible" payback

    Here is what we did prior to her death:

    Talked with an estate lawyer with 25 years experience two years ago.

    A year and half earlier, before her death, moved (transfer-exempt) her assets and ownership in house over to my dad. My dad (at home spouse) had the house (value 120k) and about 80k in the bank and a car. This is allowable under medicaid exempt transfer rules and had income of 20k for his pension. My mom then got approved for medicaid. Mom maybe had 2k in the bank at that point in time, no other assets.

    We also had Dad create a new will that upon his death formed a trust, all assets go in trust, and then it is divided among his 3 boys. Dad died in February 2012, so on that day the trust received his assets. Mom died in September of 2012 (6 months later). My brother got the form letter last week and is very scared that the state may come after the assets and house we have received from Dad in order to pay for medicaid. Should we be scared? Or is this normal? Does the state have one year from moms death to bring us to court?