Full question:
Does unpaid Medical bills count against the estate- even though they will be paid later by Medicare and/or BlueShield? Please answer the question according to AZ law. My mother died and has very large unpaid medical bills but we need to know if those amounts will be subtracted from her estate total. We would like to qualify for 'small estate' status in AZ - What is the maximum amount the estate can hold?
- Category: Wills and Estates
- Subcategory: Small Estates
- Date:
- State: Arizona
Answer:
In Arizona, a small estate can qualify for summary administration if the total value of personal property is less than fifty thousand dollars, excluding liens and encumbrances, as of the date of death. For real property, the limit is seventy-five thousand dollars under the same conditions.
Claims against the estate include known debts that have not been paid or barred. If your mother had Medicare, it typically covers 80% of the usual and customary charges for medical bills. The estate is responsible for the remaining 20% of the amount determined by Medicare, not the total billed amount. If the medical bills were not submitted to Medicare, they can still be submitted through the physician's office.
According to Arizona law, unpaid medical bills may count against the estate, especially if they are not covered by Medicare or other insurance. However, if the estate qualifies as a small estate, certain debts, including reasonable funeral expenses and necessary medical expenses from the last illness, may be excluded from the estate's total value for the purpose of distribution (A.R.S. § 14-3971; A.R.S. § 14-3973).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.