The estate tax, even at a $1 million exemption amount, applies to only 2% of Americans at death. Medicaid estate recovery can apply to anyone over the age of 55. Jeffrey A. Marshall, CELA* at Marshall Elder & Estate Planning Blog has a great post today "Medicaid Estate Recovery - A Medicaid Death Tax" asking why there is so much noise and media coverage about the estate tax when Medicaid estate recovery rules essentially act as a death tax on the poorest of seniors.

His central arguments:

• Medicaid, not Medicare, is the biggest government source of payment for long term care.

• In a curious exercise of age discrimination, the [estate] recovery program only applies to people who are over age 55.

• Because most assets must be spent before a senior becomes eligible for Medicaid, recovery efforts focus on real estate – mainly the home or family farm.

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