The Claim After A Death
Gov't Code 546.0403 — the federal estate recovery rule applies, and in probate the claim is paid in Class 7
The rule is the federal one. Texas law directs the executive commissioner to ensure that Section 1917(b)(1) of the Social Security Act is implemented under Medicaid. The section, headed the recovery of certain assistance, adopts that federal provision by reference and does not itself set out whose estate is reached or who is exempt.
Where the money goes. Funds recovered under that provision are deposited in the Medicaid account in the general revenue fund, and money in the account may be appropriated only to fund long-term care, including community-based care and facility-based care.
In probate, the claim is Class 7. Claims against an estate are classified and paid in order of priority. A claim for repayment of medical assistance payments made by the state under Chapter 32, Human Resources Code, to or for the benefit of the decedent, is a Class 7 claim.
| Class | What is in it |
|---|---|
| Class1 | What is in itFuneral expenses and expenses of the last illness, a reasonable amount approved by the court, up to $15,000 for each |
| Class2 | What is in itExpenses of administration, and of preserving, safekeeping and managing the estate |
| Class3 | What is in itSecured claims for money, including a tax lien, to the extent the property securing them can pay |
| Class4 | What is in itDelinquent child support, child support arrearages, and unpaid child support obligations |
| Class5 | What is in itCertain taxes, penalties and interest |
| Class6 | What is in itThe cost of confinement set by the Texas Department of Criminal Justice |
| Class7 | What is in itRepayment of medical assistance payments made by the state for the decedent |
| Class8 | What is in itAny other claim |
The terms of the federal provision, including any protection for a surviving family member and any hardship waiver, the agency's own rules, and how a claim is presented in probate are not on this page. Whether a particular estate owes a claim is a question for a licensed Texas attorney.
Sources for this section (2)
- Gov't Code 546.0403 — Recovery of certain assistance; Medicaid account
- Estates Code 355.102 — Claims classification; priority of payment
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Texas attorney.