Under Maryland law, a creditor of a deceased person may make a claim against such person’s probate estate within six months of the date of death. After six months, any such claim by the creditor is forever barred pursuant to the law, with one exception.
An exception is granted for claims by the Maryland Department of Health for recovery of Medicaid benefits paid on behalf of the deceased person. In particular, the Department of Health may make a claim within 6 months of the publication of the Notice to Creditors that is required to be published in a newspaper of general circulation relating to a decedent’s estate. The law requires that such Notice to Creditors for a regular estate (the rules are different for a Small Estate) be published for three consecutive weeks.
A legal question arises when the Maryland Department of Health makes a claim in a decedent’s estate close to the end of the six month period. That question is this: does the creditor’s claim period for Medicaid claims end six months following the first publication of the notice, or does it end six months following the third publication of the notice.
For technical reasons addressed by the Maryland Court of Special Appeals (now known as the Maryland Appellate Court), the creditors claims period for Medicaid claims by the Maryland Department of Health ends six months following the third publication of the Notice to Creditors. Md. Dep’t of Health v. Myers, 248 Md. App. 631, 242 A.3d 1180
Notwithstanding this rule, William M. Gatesman has been successful in assisting clients in negating a claim by the Maryland Department of Health when such department failed to follow all the rules for making a claim in an estate. If you have an estate with a creditors claim and you are not certain whether such claim is valid or whether such claim must be honored by the estate, you may contact our office for a consultation.