Cal. Code Regs. Tit. 22, § 50965 - Voluntary Post Death Lien

(a) The Department shall propose a voluntary post death lien on the real property of the estate, and other real property that the dependent(s), heir(s), or survivor(s) has an interest in, when one or more of the dependent(s), heir(s), or survivor(s) are:

(1) Living in and not willing to sell the real property, and

(2) Unable to pay the Department's claim in full, and

(3) Can demonstrate as provided in subsection (b) that he or she is unable to obtain financing.

(b) The Department shall offer to accept a voluntary post death lien as soon as it has been determined that the dependent(s), heir(s), or survivor(s) is unable to pay or to obtain financing to pay their proportionate share of the estate claim. The dependent(s), heir(s), or survivor(s) shall apply to obtain financing, for an amount not to exceed his or her proportionate share of the claim, from a financial institution as defined in Probate Code Section 40, and shall provide the Department with a denial letter(s) from the financial institution.

(c) A voluntary post death lien shall be proposed independent of a decision on an applicant's request for a waiver due to a substantial hardship.

(d) In addition to the placement of a lien on the real property, the Department shall require that monthly payments be made to the Department of Health Care Services, Estate Recovery Section, MS 4720, P.O. Box 997421, Sacramento, CA 95899-7421. The monthly payments shall be in accordance with the dependent's, heir's, or survivor's financial ability to pay, and shall be adjusted as needed. Monthly payments shall continue until the lien amount owed to the Department by the lienee, plus interest, is paid in full. Payments shall not be required when a dependent's, heir's, or survivor's income is below the federal poverty level.

(e) The voluntary post death lien will accrue simple interest at the rate of seven percent per annum, and becomes due and payable, including all interest accrued, upon the first to occur of the following:

(1) The death of the dependent(s), heir(s), or survivor(s); or,

(2) The sale, refinance, transfer, or change in title to the real property; or,

(3) Escrow funding; and/or

(4) Default in payments.

(f) In the event of a transfer of an interest in, or title to, real property subject to the voluntary post death lien without payment of the lien, the lienee shall provide notification of the transfer, with the identity and address of the new titleholder(s), by mail to the Department at the address specified in subsection (g), within 30 days of the transfer. The lienee shall notify the new titleholder(s) of the voluntary post death lien prior to the transfer of title, and the obligation to satisfy the lien pursuant to this Section. The new titleholder(s) shall make arrangement for full satisfaction of the Department's lien with the Estate Recovery Section.

(g) When the dependent(s), heir(s), or survivor(s) agree to a voluntary post death lien, the Department will prepare and mail the lien documents to the dependent(s), heir(s), or survivor(s) for notarized signature(s). The dependent(s), heir(s), or survivor(s) shall return the notarized documents to the Department of Health Care Services, Estate Recovery Section, MS 4720, P.O. Box 997425, Sacramento, CA 95899-7425. Upon receipt of the lien documents, the Department shall forward the documents to the County Recorder's Office where the property is located for recording of the lien.

(h) The Department shall issue a release of lien to the County Recorder's Office after full payment of the lien with accrued interest is received.

Notes

Cal. Code Regs. Tit. 22, § 50965

1. New section filed 3-23-2005; this filing is deemed an emergency and is exempt from review by OAL pursuant to Welfare and Institutions Code section 14043.75(a); effective 3-23-2005 (Register 2005, No. 12). A Certificate of Compliance must be transmitted to OAL by 7-21-2005 or emergency language will be repealed by operation of law on the following day. For prior history, see Register 92, No. 39.
2. Repealed by operation of Government Code section 11346.1(g) (Register 2005, No. 41).
3. New section filed 5-10-2006; operative 5-10-2006 pursuant to Government Code section 11343.4 (Register 2006, No. 19).
4. Change without regulatory effect amending subsections (d), (f) and (g) and NOTE filed 4-15-2008 pursuant to section 100, title 1, California Code of Regulations (Register 2008, No. 16).

Note: Authority cited: Section 20, Health and Safety Code; and Sections 10725 and 14124.5, Welfare and Institutions Code. Reference: Section 1396 p(b), 42 USC; Section 40, Probate Code; Section 14009.5, Welfare and Institutions Code; California Advocates for Nursing Home Reform v. Bontá (2003) 106 Cal. App. 4th 498; and California Constitution, Article 15, Section 1.

1. New section filed 3-23-2005; this filing is deemed an emergency and is exempt from review by OAL pursuant to Welfare and Institutions Code section 14043.75(a); effective 3-23-2005 (Register 2005, No. 12). A Certificate of Compliance must be transmitted to OAL by 7-21-2005 or emergency language will be repealed by operation of law on the following day. For prior history, see Register 92, No. 39.
2. Repealed by operation of Government Code section 11346.1(g) (Register 2005, No. 41).
3. New section filed 5-10-2006; operative 5-10-2006 pursuant to Government Code section 11343.4 (Register 2006, No. 19).
4. Change without regulatory effect amending subsections (d), (f) and (g) and Note filed 4-15-2008 pursuant to section 100, title 1, California Code of Regulations (Register 2008, No. 16).