Montana Department of Public Health and Human Services, Estate Recovery (Third Party Liability Unit)
Montana · Medicaid Recovery
dphhs.mt.gov/oig/pc/PCTPLMedicaid Estate Recovery in Montana
Montana files a claim against a deceased Medicaid recipient's estate for the medical assistance Medicaid paid on their behalf. Recovery applies to recipients who were 55 or older when they received assistance and to residents of an institution such as the Montana State Hospital. Recipients eligible under Medicaid Expansion are not subject to recovery except for Medicaid-paid long-term care such as nursing home and home and community-based services.
Steps to take when someone dies
- •A business or farm that is the heir's sole income-producing asset
- •A home where an heir age 65 or older, blind, or disabled has lived for at least a year
- •Property an heir needs for the necessities of life with no other assets available
Medicaid Estate Recovery in Montana: key facts
What Montana says4
- What is recovered
The Department claims the amount Medicaid paid on the recipient's behalf against the estate after death.1
Medicare cost-sharing paid through a Medicare Savings Program is not subject to recovery. The Combined Medicaid manual excludes Medicare Savings Program premiums paid on or after January 1, 2010 from estate recoveries.2
- Who is subject to recovery
Recipients age 55 or older when they received Medicaid-paid services, and residents of medical facilities or institutions such as the Montana State Hospital.3
Recipients eligible under Medicaid Expansion are not subject to recovery except for Medicaid-paid long-term care such as nursing home and home and community-based services, as required by federal law.4
- When recovery is deferred or barred
Mont. Code Ann. 53-6-167(9)(b) bars recovery while there is a surviving spouse of the recipient, or a surviving child of the recipient who is under 21, blind, or permanently and totally disabled.5
The Department's brochure states that the State can recover from the estate of the surviving spouse if the spouse dies within three years of the recipient.3
- Undue-hardship waiver
Under Mont. Admin. r. 37.82.431, the Department may waive estate recovery, wholly or in part, where it would cause undue hardship. No waiver is available where the decedent or applicant created the hardship by estate planning, gifting or other methods to divert or shelter assets to avoid recovery.6
Undue hardship covers a business, including a working farm or ranch, the applicant depended on for a livelihood; a residence owned by the decedent where an aged (65 or over), blind or disabled relative lived continuously and lawfully for a year or more before the death; and property needed for necessities of life.6
Governing law: Mont. Code Ann. 53-6-167; 53-6-180; 53-6-189; Mont. Admin. r. 37.82.431
Sources6
- 1.Third Party Liability (Montana DPHHS Office of Inspector General)
- 2.Combined Medicaid Manual, section 304-4, July 1, 2023
- 3.Montana Medicaid Lien and Estate Recovery Program (SLTC-011)
- 4.Medicaid Lien and Estate Recovery Program (Ombudsman edition)
- 5.Mont. Code Ann. 53-6-167
- 6.Mont. Admin. r. 37.82.431
Montana Medicaid estate recovery
Montana Department of Public Health and Human Services, Estate Recovery (Third Party Liability Unit)
Phone
Estate Recovery Program
Lien Recovery Program
Mailing address
Website
Tools for Planning and Settling an Estate in Montana
Free calculators and checklists for planning or settling an estate in Montana: will and trust costs, probate, executor pay, and inheritance taxes.
How Do I Settle an Estate?
Settling an estate in Montana: the personal representative files the estate inventory within 270 daysMCA §§ 72-3-607, 72-3-609Verified Sep 15, 2026View source of appointment; creditors have 4 monthsMCA §§ 72-3-801, 72-3-803, 72-3-804, 72-3-805, 72-3-807Verified Oct 18, 2026View source to present claims; a simple estate closes in 4 months to 6 months.
How Much Does Probate Cost?
Probate on a $500,000 estate in Montana costs an estimated $24,934MCA § 72-3-634 (court review of reasonableness of compensation of persons employed by the personal representative, including attorneys); § 72-3-632 (reasonable attorney fees in estate litigation); former § 72-3-633 repealed by Sec. 105, Ch. 313, L. 2019Verified Sep 8, 2026View source. Attorney fees run 1.8%MCA § 72-3-634 (court review of reasonableness of compensation of persons employed by the personal representative, including attorneys); § 72-3-632 (reasonable attorney fees in estate litigation); former § 72-3-633 repealed by Sec. 105, Ch. 313, L. 2019Verified Sep 8, 2026View source to 2.9%MCA § 72-3-634 (court review of reasonableness of compensation of persons employed by the personal representative, including attorneys); § 72-3-632 (reasonable attorney fees in estate litigation); former § 72-3-633 repealed by Sec. 105, Ch. 313, L. 2019Verified Sep 8, 2026View source of the estate under a reasonable-compensation standard.
Do I Need Probate?
In Montana, estates valued at $100,000MCA § 72-3-1101Verified Sep 8, 2026View source or less skip probate with the Collection of Personal Property by AffidavitMCA § 72-3-1101Verified Sep 8, 2026View source, 30 daysMCA § 72-3-1101Verified Sep 8, 2026View source after death.
Who Inherits Without a Will?
Without a will in Montana, a surviving spouse takes the entire estateMCA § 72-2-112Verified Sep 10, 2026View source when every child of either spouse is a child of both, and descendants divide what passes to them per capita with representationMCA § 72-2-116Verified Sep 10, 2026View source.
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