TO: Nursing Home Providers
The purpose of this alert is to clarify the procedures associated with handling funds following the death of a Medicaid-eligible nursing home resident. The Medicaid Administrative Codes 560-X-10-.14(3)(f) and 560-X-22-.25(5)(e) and the Social Security Administration Guide for Representative Payees require that nursing homes, upon the death of a resident, release any funds being held at the facility in the resident’s name to the administrator of the deceased resident’s estate. In the event that there is not a person who has been appointed to act as the administrator of the estate, the funds should be sent to the Alabama State Treasurer’s Office, Unclaimed Property Division.
In an effort to ensure that all Alabama nursing home facilities are in compliance with the rules and regulations pertaining to the handling of the funds of deceased residents, the following instructions are provided:
A. Resident Trust Funds:
1. If the deceased resident has funds remaining at the nursing home, those funds must immediately be turned over to the legal representative of the resident’s estate. The facility should obtain a copy of the letters of administration issued by the probate court identifying the legal representative.
2. If there is no evidence of a person with legal authority to administer the estate of the deceased resident, the facility must prepare and submit forms: UCP1 (Cover Sheet Required for All Reports) and UCP2 (For Reporting of Money and/or Securities Related Property), along with a check in the amount of the refund due the resident, to the Alabama State Treasury’s Unclaimed Property Division. Forms may be obtained through the Alabama Treasury Website: www.moneyquest.alabama.gov.
The UCP1 form requires information specific to your business and the UCP2 form will contain the reported owner information and assets reported and remitted for each owner account. To further illustrate what is required:
a. Form UCP1, the unclaimed property report, must include the payment, which is the total amount of funds as reflected in your report (sum of all reported unclaimed property owner’s assets). You will issue one check/wire with your unclaimed property report. This remittance of the report and assets enables your business to clear/close your ledger/accounting of those outstanding liabilities. Any future reference to these accounts after your reporting should be directed to the State Treasurer’s Office, Unclaimed Property Division.
b. Form UCP2 is the report where you list the individuals for whom you are submitting funds to UCP.
Section 1 – Account #/Check# (does not need to be completed)
Section 2 – NAUPA Property Code (should state “Resident Trust Funds”)
Section 3 – Amount being remitted for the deceased resident
Section 4 – Securities
Section 5 – Can be left blank
Section 6 – The resident’s name
Section 7 – The name/address of your facility
Section 8 – The resident’s Social Security number
Section 9 – Relation Code (should state “Payee”)
The State of Alabama Treasurer’s Office is available to help answer any additional questions you may have on this issue. If you wish to contact the Unclaimed Property Division on reporting unclaimed property contact the Reporting Section (toll free) at 888-844-8400 or visit the program’s website at www.moneyquest.alabama.gov.
*EffectiveDecember 2013, nursing home facilities must notify the Alabama Medicaid Agency, within five (5) business days, of any submission to the Alabama State Treasury’s Unclaimed Property Division. The resident’s name, Social Security number, and the amount of funds submitted should be forwarded to the attention of the Estate Recovery Unit of the Third Party Division. To satisfy this requirement, nursing homes may choose to fax a copy of the UCP 2 form to the Alabama Medicaid Agency at 334/353-4820 at the time they submit to Unclaimed Property.
B. Credit Balances (Other than resident trust funds):
Upon the death of a resident with a credit balance on the facility’s financial records, the facility must convey promptly these funds, and provide a final accounting of said funds to the Alabama Medicaid Agency. When sending the credit balance information, the facility must provide the resident’s name and social security number along with the funds to the attention of Estate Recovery.
If you have any questions regarding this matter, please contact Codie Rowland at 334-242-5652 or Teresa Dunbar at 334-242-5311.