Episode 10 - Texas Probate Homes Face Risk From Medicaid Recovery

In this episode of the Texas Probate Real Estate Podcast, host Jeremy Kritt, a Texas real estate broker who guides executors through complex probate property sales, sits down with probate attorney Pamela Hailey‑Petty to break down one of the most misunderstood issues families face: the Medicaid Estate Recovery Program.Jeremy and Pamela unpack how MERP claims actually work, why Medicaid liens catch so many heirs off guard, and how quickly equity can disappear when mortgages, deferred maintenance, and recovery claims collide. Pamela shares real cases where families assumed the home was “free and clear,” only to discover that Medicaid had a legal right to recover costs from the estate.They discuss the emotional pressure heirs feel to make fast decisions, the danger of committing to repairs or sales before understanding the estate’s true financial picture, and why evaluating equity requires more than just looking at the home’s value. MERP, debt, taxes, and carrying costs all play a role in determining what the heirs actually walk away with.This episode gives executors and families a clear look at the risks, the rules, and the importance of professional guidance when navigating Texas probate real estate. If you’re handling a property tied to Medicaid benefits, this conversation will help you avoid costly surprises and protect the estate’s value.Guest: Pamela Hailey-Petty, Attorney | Estate Planning & Probate | Hailey-Petty Law Firm | Serving clients in Austin and San AntonioWith a background in law, business, and public service, including managing the Governor of Texas Emerging Technology Fund, she brings a practical and client-focused approach to every case. Since 2014, she has been dedicated to helping Texas families protect their futures through estate planning, probate, and trust guidance, taking a practical and client-focused approach to every case.Website: www.haileypettylaw.com