Medicaid Estate Recovery in Illinois: when someone dies
A 4-step process for Illinois Department of Healthcare and Family Services — Estate Recovery Program after a death in Illinois.
OverviewWhen someone dies
Medicaid Recovery
Illinois
hfs.illinois.gov/medicalclients/medicaidestaterecovery/guidetothemedicaidestaterecoveryprogram.html→Administering agency
Illinois Department of Healthcare and Family Services — Estate Recovery Program
Phone217-785-2711
WebsiteVisit website →
Authority
305 ILCS 5/5-13; $25,000 exemption 89 Ill. Adm. Code 102.210(h); hardship waiver 89 Ill. Adm. Code 102.210(g)
Verified Jul 2026
Steps to take
- Determine whether the deceased received AABD cash or medical assistance after age 55, or resided in a long-term care facility after a medical-institution stay of more than 120 days with a lien filed on their real property.
- Respond to the Notice of Intent to File a Claim Against the Estate that HFS sends to the estate representative or heirs, providing the information requested.
- Treat an estate recovery claim as a debt of the estate; funeral, legal, and mortgage costs are paid before the claim.
- Request a hardship waiver within 60 calendar days of the notice if recovery would cause an heir or legatee undue hardship, returning the application with supporting documents.
Illinois Department of Healthcare and Family Services — Estate Recovery Program
Phone: 217-785-2711
Visit the agency website →Frequently asked questions
Illinois files a claim against the estate of a person who received Aid to the Aged, Blind or Disabled (AABD) assistance. A claim covers all AABD cash assistance received and any medical assistance paid after the recipient's 55th birthday, and covers all medical assistance paid — regardless of age — for a medical-assistance-only recipient who lived in a long-term care facility, was in a medical institution more than 120 days, and had a lien filed on their real property.
No recovery is satisfied while there is a surviving spouse, a child under 21, or a child of any age who is blind or permanently and totally disabled. For deaths on or after July 1, 2022, the first $25,000 of estate value is also protected from recovery.
An heir or legatee files a Hardship Waiver Application with HFS within 60 calendar days of the Notice of Intent to File a Claim. The criteria under 89 Ill. Adm. Code 102.210 include an income-producing family business held at least 12 months that supplies 50% or more of the heirs' livelihood, or recovery that would leave heirs dependent on public assistance.
Sources
Data sourced from Medicaid Estate Recovery in Illinois primary sources (6 pages reviewed). How we research.
Medicaid Recovery
Illinois
hfs.illinois.gov/medicalclients/medicaidestaterecovery/guidetothemedicaidestaterecoveryprogram.html→Administering agency
Illinois Department of Healthcare and Family Services — Estate Recovery Program
Phone217-785-2711
WebsiteVisit website →
Authority
305 ILCS 5/5-13; $25,000 exemption 89 Ill. Adm. Code 102.210(h); hardship waiver 89 Ill. Adm. Code 102.210(g)
Verified Jul 2026