The Nebraska State Legislature passed Legislative Bill 72 on May 7, 2015 and Governor Pete Ricketts signed it into law on May 13, 2015. LB 72 was introduced for the State to be reimbursed for Medicaid benefits paid to an individual. This blog previously discussed some of the problems with LB 72 as originally introduced. For instance, the proposed bill was concerning because it established a lien on a real estate transfer when the real estate was not transferred for full consideration. There was also no set time limitation on when a lien could attach.
LB72 underwent significant changes before it was passed by the Unicameral. Most notably the provision on creating a lien on real estate not transferred for full consideration was removed. The focus of the bill as passed, places restrictions on transferring trust property to beneficiaries until Medicaid reimbursement claims have been satisfied. The bill also requires that the Department of Health and Human Services receive notice when filing any inheritance tax determination. Individuals should consult with an estate planning and probate attorney regarding the impact of LB 72.