Search Articles

Find Attorneys

Can the Texas Medicaid Estate Recovery Program Take My Land?

  • July 9th, 2025
Q
If I sign an affidavit of heirship because my father died and left no will, but the Medicaid Estate Recovery Program in Texas hasn't taken any action (two years have passed since his death), can they take my land if I sell the house to recoup the money I got for selling my father's home?
A

Your father died in Texas without a will and you established your right to inherit his property by signing an affidavit of heirship. You’re wondering whether the Medicaid Estate Recovery Program (MERP) can claim your land or the proceeds from selling your father’s house — especially since two years have passed and MERP has not taken any action.

Key Points:

1. What is MERP?

  • The Texas Medicaid Estate Recovery Program (MERP) allows the state to seek repayment from the estate of a deceased person who received Medicaid long-term care benefits after age 55. This typically includes claims against real property (like a house) that passes through probate.

2. Timing and Notice

  • When a Medicaid recipient dies, the state is supposed to send notice to the estate or heirs of its intent to file a claim. However, there is no strict deadline for the state to file a MERP claim, but Texas law generally requires claims against an estate to be made within four years of the decedent’s death (Texas Estates Code § 355.001).

3. Affidavit of Heirship and Sale of Property

  • An affidavit of heirship is often used to transfer title to heirs when there is no will and no formal probate. However, property transferred by affidavit of heirship is still considered part of the probate estate for MERP purposes (Texas HHS Guide to MERP).
  • If you sell the property, the proceeds may still be subject to a MERP claim if the state asserts one within the allowable period.

4. What If Two Years Have Passed and MERP Has Not Acted?

  • The fact that two years have passed does not automatically bar MERP from making a claim. The state can still file a claim within the four-year window.
  • If you sell the house and distribute or spend the proceeds before a MERP claim is made, you (and other heirs) could potentially be personally liable to repay the claim up to the value of the property received.

5. Are There Exceptions or Defenses?

  • MERP will not pursue recovery if:
    • There is a surviving spouse.
    • There is a child under 21, or a child of any age who is blind or permanently disabled.
    • The value of the estate is $10,000 or less, or the Medicaid costs are $3,000 or less.
    • The cost of selling the property exceeds its value.
    • Undue hardship can be demonstrated (e.g., the property is a family farm or the only income-producing asset for heirs).
  • If the property was transferred outside of probate (e.g., by a Transfer on Death Deed), MERP generally cannot recover against it (Rania Combs Law).

6. Practical Considerations

  • Title companies may be reluctant to insure clear title for up to two years after death unless a court proceeding (like probate) is completed, because of the risk of a MERP claim.
  • If you have already sold the property, keep records of the sale and any distributions to heirs. If a claim is made, you may need to show how the proceeds were handled.
Scenario Can MERP Recover? Notes
Property sold after affidavit of heirship, within 4 years of death Yes, if MERP files a claim Heirs may be personally liable up to the value received
Property sold after 4 years Unlikely, unless fraud or other exceptions apply Statute of limitations may bar claim
Property transferred by Transfer on Death (TOD) Deed No Not part of probate estate

References and Further Reading

Bottom Line
If you sell your father’s house after filing an affidavit of heirship and two years have passed since his death, MERP can still file a claim against the estate (and potentially against you as an heir) within four years. The safest course is to wait out the four-year period or ensure that any sale proceeds are available to satisfy a potential claim. If the property was transferred by a Transfer on Death Deed, MERP generally cannot recover.

For more details, see the official Texas HHS MERP guide.

Local Elder Law Attorneys in Your City

Elder Law Attorney

Firm Name
City, State

Elder Law Attorney

Firm Name
City, State

Elder Law Attorney

Firm Name
City, State

This answer is based on current Texas law and authoritative sources as of 2024.

Disclaimer: This is not legal advice and may not be accurate. The T&Cs of LawY apply to this response.


Last Modified: 07/09/2025
Medicaid 101
What Medicaid Covers

In addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.

READ MORE
How to Qualify for Medicaid

To be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.

READ MORE
Medicaid’s Protections for Spouses

Spouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.

READ MORE
What Medicaid Covers

In addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.

READ MORE
How to Qualify for Medicaid

To be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.

READ MORE
Medicaid’s Protections for Spouses

Spouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.

READ MORE
Medicaid Planning Strategies

Careful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.

READ MORE
Estate Recovery: Can Medicaid Take My House After I’m Gone?

If steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.

READ MORE
Help Qualifying and Paying for Medicaid, Or Avoiding Nursing Home Care

There are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.

READ MORE
Are Adult Children Responsible for Their Parents’ Care?

Most states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.

READ MORE
Applying for Medicaid

Applying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.

READ MORE
Alternatives to Medicaid

Medicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.

READ MORE
ElderLaw 101
Estate Planning

Distinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.

READ MORE
Grandchildren

Learn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.

READ MORE
Guardianship/Conservatorship

Understand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.

READ MORE
Health Care Decisions

We need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.

READ MORE
Estate Planning

Distinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.

READ MORE
Grandchildren

Learn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.

READ MORE
Guardianship/Conservatorship

Understand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.

READ MORE
Health Care Decisions

We need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.

READ MORE
Long-Term Care Insurance

Understand the ins and outs of insurance to cover the high cost of nursing home care, including when to buy it, how much to buy, and which spouse should get the coverage.

READ MORE
Medicare

Learn who qualifies for Medicare, what the program covers, all about Medicare Advantage, and how to supplement Medicare’s coverage.

READ MORE
Retirement Planning

We explain the five phases of retirement planning, the difference between a 401(k) and an IRA, types of investments, asset diversification, the required minimum distribution rules, and more.

READ MORE
Senior Living

Find out how to choose a nursing home or assisted living facility, when to fight a discharge, the rights of nursing home residents, all about reverse mortgages, and more.

READ MORE
Social Security

Get a solid grounding in Social Security, including who is eligible, how to apply, spousal benefits, the taxation of benefits, how work affects payments, and SSDI and SSI.

READ MORE
Special Needs Planning

Learn how a special needs trust can preserve assets for a person with disabilities without jeopardizing Medicaid and SSI, and how to plan for when caregivers are gone.

READ MORE
Veterans Benefits

Explore benefits for older veterans, including the VA’s disability pension benefit, aid and attendance, and long-term care coverage for veterans and surviving spouses.

READ MORE