Will TennCare Take the House? Estate Recovery in Tennessee
Sometimes, yes. If your parent received TennCare long-term care at age 55 or older, such as nursing home care or care at home, TennCare is required by federal law to seek repayment from the estate after death. The house is often the largest asset in that estate. But recovery happens only after death, it waits while a spouse is living, and some families qualify for a waiver. Your family is not personally responsible for the debt.
Who is subject to TennCare estate recovery?
Tennessee law allows recovery from the estate of a person who was 55 or older when they received TennCare benefits (Tenn. Code Ann. § 71-5-116). TennCare's page says it must seek recovery when all of these are true:
The member received CHOICES Group 1, 2 or 3 (TennCare's long-term care services).
The member received that care at age 55 or older.
The member has died.
No waiver or undue hardship applies.
During your parent's lifetime, no lien may be placed on the home for TennCare benefits, except by a court judgment for benefits paid incorrectly (§ 71-5-116(b)).
What can TennCare recover?
TennCare pays a health plan a monthly premium for each member and recovers the part of that premium that is for long-term care. The amount depends on the CHOICES group, whether the person also had Medicare, and the region of the state.
For Middle Tennessee, TennCare lists the monthly CHOICES Group 1 and 2 rate as $4,926.74 for someone with both Medicare and TennCare, and $6,834.40 for someone with TennCare only (rates current as of June 1, 2026, and likely to rise). TennCare recovers the premium even for months when services were not used, such as a long hospital stay.
TennCare says the estate includes what the person owned before death, such as a house, a car and bank accounts.
When recovery must wait or cannot happen
Tennessee law says recovery may be pursued only after the death of a surviving spouse, and only when there is no surviving child under 18 and no surviving child who is blind or permanently and totally disabled (§ 71-5-116(c)). TennCare's page and its Request for Release form list these situations:
The member is survived by a spouse.
The member is survived by a child under 21.
The member is survived by a child the Social Security Administration has determined to be blind or permanently and totally disabled.
One detail: the statute says under 18, while TennCare's page and form use under 21, which its page attributes to federal law. If a child is under 21, check that box and send the birth certificate the form asks for.
Undue hardship waivers TennCare recognizes
TennCare's page lists three undue hardships that waive or delay recovery:
Family farm or business. The estate property is the survivors' only income-producing asset. This acts as a waiver.
Sibling caretaker. A sibling lived in the home at least one year before the member entered a facility, gave care that kept the member at home, and has lived there ever since.
Son or daughter caretaker. The same rule, but for at least two years.
The caretaker hardships end if the caretaker moves out, sells the property or dies. The statute also allows a hardship finding for a child who became blind or disabled as an adult, if TennCare and the personal representative agree or a court decides (§ 71-5-116(c)).
How TennCare learns of the death, and the release the court needs
The Department of Health must notify TennCare within 30 days after it receives notice of the death of anyone 55 or older (§ 71-5-116(d)).
If an estate is opened, within 60 days after letters are issued, the personal representative must notify TennCare of the death of anyone 55 or older, say whether the person was a TennCare member, and request a release. Within the same 60 days, the personal representative files an affidavit with the clerk that TennCare was notified (Tenn. Code Ann. § 30-2-301(b)(5)). See executor duties in Tennessee.
Before the probate estate of someone enrolled in TennCare at death can close, the personal representative must file a release from TennCare showing that the amount due was paid, that TennCare waived its claim, or that nothing is due (§ 71-5-116(c)(2)).
The process starts with TennCare's Request for Release form, sent with a death certificate. Get it from TennCare's website, by calling 866-389-8444, or from your probate clerk. If money is owed, TennCare sends a claim with an itemized statement. If not, or if a waiver or hardship applies, TennCare sends a letter releasing or deferring the estate.
Why the house matters, even without probate
For many families, the house is the only asset large enough to matter. Some assume that if no one opens an estate, TennCare will never collect. That is risky. If TennCare does not receive a notice to creditors within 12 months of the death, it still has up to 48 months from the date of death to file a claim or ask the court to open or reopen the estate (Tenn. Code Ann. § 30-2-310(c)).
Read what happens to an inherited house in Tennessee, then talk with us before anyone signs a deed.
Planning ahead can help
The best time to think about estate recovery is before long-term care begins, or as early as possible after. Elder law and TennCare planning looks at how the house is titled, whether a spouse or caretaker child may qualify for an exception, and what documents the family needs. Planning works within the rules, openly, and no plan can promise a particular result.
One example: under TennCare's Long-Term Care Partnership program, assets equal to the benefits a qualified partnership insurance policy paid are not counted for eligibility and are not recovered at death. See our estate planning and probate services.
Rules change, so call before you sell or transfer
TennCare updates its rates, forms and procedures, and the law can change. Before you sell, deed or transfer a parent's house, or close an estate, call us so we can review the deed, the TennCare history and the family situation first.
Ready to Talk?
Call (615) 997-7618 to talk with Kylene Ross about TennCare estate recovery in Sumner County or a nearby county. Our paralegal Cajun has 20 years of experience in probate, wills and estates. Prefer to write first? Send us a message and we are notified right away.
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