What happens to the remainder when the Beneficiary passes away for Medicaid recipients?
OBRA trusts are set up with the funds of the person with a disability. As this is a Medicaid payback trust for clients who receive Medicaid, there are specific rules for each state that govern how the remainder is handled. The Medicaid office for each state that the Beneficiary received Medicaid is notified upon the death of the Beneficiary. The following is an example of CCT’s policy for the remainder as long as the policy is in compliance with the state Medicaid Policy: If there is $50,000 remaining in the trust fund and Medicaid is owed $25,000, whoever is named in the Joinder Agreement will receive the balance after Medicaid is paid back and administrative fees are deducted.
