Short answer: Possibly. Heirs can request an undue hardship waiver, and can ask MERP to deduct documented home maintenance costs and costs of care that delayed the nursing home stay; both requests must be made within 60 days of MERP’s Notice of Intent to File a Claim.
Undue hardship waiver (Form 5006). Texas rules list grounds including: the property was the site of a family business, farm or ranch for at least 12 months before the death and produces 50% or more of the heirs’ livelihood; the heirs would become eligible for public assistance if the claim were made; receiving the estate would let a survivor stop needing assistance; the Medicaid was needed because of a crime against the recipient; or other compelling reasons. A separate homestead hardship applies when lower-income siblings or descendants inherit the home. Losing an expected inheritance is not a hardship by itself.
Deductions from the claim, with receipts: real estate taxes, utilities, insurance, repairs and upkeep paid to maintain the home, and direct payments for care (including attendant care) that kept the person at home longer.
Deadlines: hardship and deduction requests are due within 60 days of the Notice of Intent. MERP decides a hardship request within 40 days of a complete request, and a denial can be reviewed if requested in writing within 60 days. Open the MERP notice the day it arrives and involve the estate’s attorney.