62A-11-111 - Lien provisions.
62A-11-111. Lien provisions.
Provisions for collection of any lien placed as a condition of eligibility for any federally orstate-funded public assistance program are as follows:
(1) Any assistance granted after July 1, 1953 to the spouse of an old-age recipient whowas not eligible for old-age assistance but who participated in the assistance granted to the familyis recoverable in the same manner as old-age assistance granted to the old-age recipient.
(2) At the time of the settlement of a lien given as a condition of eligibility for the old-ageassistance program, there shall be allowed a cash exemption of $1,000, less any additional moneyinvested by the department in the home of an old-age recipient or recipients of other assistanceprograms either as payment of taxes, home and lot improvements, or to protect the interest of thestate in the property for necessary improvements to make the home habitable, to be deductedfrom the market or appraised value of the real property. When it is necessary to sell property orto settle an estate the department may grant reasonable costs of sale and settlement of an estate asfollows:
(a) When the total cost of probate, including the sale of property when it is sold, and thecost of burial and last illness do not exceed $1,000, the exemption of $1,000 shall be the totalexemption, which shall be the only amount deductible from the market or appraised value of theproperty.
(b) When $1,000 is not sufficient to pay for the costs of probate, the followingexpenditures are authorized:
(i) cost of funeral expenses not exceeding $1,500;
(ii) costs of terminal illness, provided the medical expenses have not been paid from anystate or federally-funded assistance program;
(iii) realty fees, if any;
(iv) costs of revenue stamps, if any;
(v) costs of abstract or title insurance, whichever is the least costly;
(vi) attorney's fees not exceeding the recommended fee established by the Utah State Bar. When an attorney sells the property in an estate he is probating, he is entitled only to either a realestate fee or an attorney's fee, whichever is the lesser amount;
(vii) administrator's fee not to exceed $150;
(viii) court costs; and
(ix) delinquent taxes, if any.
(3) The amounts listed in Subsection (2)(b) are to be considered only when the total costsof probate exceed $1,000, and those amounts are to be deducted from the market or appraisedvalue of the property in lieu of the exemption of $1,000 and are not in addition to the $1,000exemption.
(4) When both husband and wife are recipients and one or both of them own an interest inreal property, the lien attaches to the interests of both for the reimbursement of assistance receivedby either or both spouses. Only one exemption, as provided in this section, is allowed.
(5) When a lien was executed by one party on property that is owned in joint tenancywith full rights of survivorship, the execution of the lien severs the joint tenancy and a tenancy incommon results, insofar as a department lien is affected, unless the recipients are husband andwife. When recipients are husband and wife who own property in joint tenancy with full rights ofsurvivorship, the execution of a lien does not sever the joint tenancy, insofar as a department lienmight be affected, and settlement of the lien shall be in accordance with the provisions of
Subsection (4).
(6) The amount of the lien given for old-age assistance shall be the total amount ofassistance granted up to the market or appraised value of the real or personal property, less theamount of the legal maximum property limitations from the execution of the lien until settlementthereof. There shall be no exemption of any kind or nature allowed against real or personalproperty liens granted for old-age assistance except assistance in the form of medical care, andnursing home care, other types of congregate care, and similar plans for physically and mentallyill persons.
(7) When it is necessary to sell property or to settle an estate, the department isauthorized to approve payment of the reasonable costs of sale and settlement of an estate onwhich a lien has been given for old-age assistance.
(8) The amount of reimbursement of all liens held by the department shall be determinedon the basis of the formulas described in this section, when they become due and payable.
(9) All lien agreements shall be recorded with the county recorder of the county in whichthe real property is located, and that recording has the same effect as a judgment lien on any realproperty in which the recipient has any title or interest. All such real property including but notlimited to, joint tenancy interests, shall, from the time a lien agreement is recorded, be andbecome charged with a lien for all assistance received by the recipient or his spouse as providedin this section. That lien has priority over all unrecorded encumbrances. No fees or costs shall bepaid for such recording.
(10) Liens shall become due and payable, and the department shall seek collection ofeach lien now held:
(a) when the property to which the lien attaches is transferred to a third party prior to therecipient's death, provided, that if other property is purchased by the recipient to be used by himas a home, the department may transfer the amount of the lien from the property sold to theproperty purchased;
(b) upon the death of the recipient and his spouse, if any. When the heirs or devisees ofthe property are also recipients of public assistance, or when other hardship circumstances exist,the department may postpone settlement of the lien if that would be in the best interest of therecipient and the state;
(c) when a recipient voluntarily offers to settle the lien; or
(d) when property subject to a lien is no longer used by a recipient and appears to beabandoned.
(11) When a lien becomes due and payable, a certificate in a form approved by thedepartment certifying to the amount of assistance provided to the recipient and the amount of thelien, shall be mailed to the recipient, his heirs, or administrators of the estate, and the same shallbe allowed, approved, filed, and paid as a preferred claim, as provided in Subsection75-3-805(1)(e) in the administration of the decedent's estate. The amount so certified constitutesthe entire claim, as of the date of the certificate, against the real or personal property of therecipient, or his spouse. Any person dealing with the recipient, heirs, or administrators, may relyupon that certificate as evidence of the amount of the existing lien against that real or personalproperty. That amount, however, shall increase by accruing interest until time of final settlement,at the rate of 6% per annum, commencing six months after the lien becomes due and payable, orat the termination of probate proceedings, whichever occurs later.
(12) If heirs are unable to make a lump-sum settlement of the lien at the time it becomes
due and payable, the department may permit settlement based upon periodic repayments in amanner prescribed by the department, with interest as provided in Subsection (11).
(13) All sums so recovered, except those credited to the federal government, shall beretained by the department.
(14) The department is empowered to accept voluntary conveyance of real or personalproperty in satisfaction of its interest therein. All property acquired by the department under theprovisions of this section may be disposed of by public or private sale under rules prescribed bythe department. The department is authorized to execute and deliver any document necessary toconvey title to all property that comes into its possession, as though the department constituted acorporate entity.
(15) Any real property acquired by the department, either by foreclosure or voluntaryconveyance, is tax exempt, so long as it is so held.
Amended by Chapter 12, 1994 General Session