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I was his legal guardian by court order. A person at the DMV told me at his death I am no longer the guardian.
Medicaid has sent me an estate recovery questionnaire. I am fairly certain the condemned property, his 2020 truck, and bank balance will be part of the recovery.To be honest I think it should be since Medicaid paid for his care.

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I suggest seeing a good Elder Law attorney experienced with Medicaid who can advise you on both what to do with the condemned property and also how to proceed with Medicaid recovery. Since there is no will, state law will dictate who inherits everything. But Medicaid gets first crack. The question is, how will the Medicaid claw-back apply to a property that isn't sellable through the normal process. And if you have siblings, they would be part of the inheritance as well. If Medicaid disclaims any interest in the property, can you (and any siblings) disclaim it as well, and let it fall to the local government to deal with, or are you responsible for cleaning it up as a hazardous site? An attorney can help you sort through all that. Bring to your appointment all paperwork you have -- the bank account, the truck title, the information from the building inspector, the Medicaid paperwork, your guardianship order, etc., to save time and show the whole situation.

You may be able to sell the property to someone who wants the lot and would be willing to do the tear-down. I know a few people who have done this with dilapidated inherited properties.

Another option might be the local fire department! Sometimes they accept properties to be burned down to train their trainees. I know a person and also an organization that did this.
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