Hazel Wilson and her husband executed and funded a revocable living trust in 1991. The trust became irrevocable at her husband’s death in 1998, forming an A/B trust. Hazel had access to the principal and income from trust A, but only the income from trust B. In 1999, Hazel transferred $636,638 in property to her […]

Sonya Lotzer and Bobbi Lerud were in separate collisions. After settling their negligence claims, they funded special needs trusts without first paying Medicaid liens asserted by the State of Minnesota. Norwest Bank filed a declaratory judgment action alleging that Medicaid’s right to recover is deferred until the beneficiary’s death where a third party recovery is […]

A tort plaintiff sought to fund his special needs trust without first repaying the Medicaid lien. Citing Norwest, the Court concluded that 1396p(d)(4) does not alter Medicaid’s right to recover on its lien prior to funding a special needs trust. The recipient’s rights against the third-party tortfeasor were assigned when he applied for and received […]

A 51 year old nursing home resident assigned her Social Security Disability check to a special needs trust. She then argued that the SSD payment was not subject to Medicaid’s co-pay requirement. The Department rejected her argument, requiring that she pay her SSD (less her personal needs allowance) toward the cost of nursing home care. […]

Carl Bergman had an annuity account which he transferred to his wife after he was admitted to a nursing home. After Lucille, his wife, was diagnosed with cancer, she gifted those assets to their children. Following Lucille’s death, the State filed an estate recovery claim in Lucille’s estate relating to payments made for Carl’s care. […]

Prior to his death, Harold Ullmer was on Medicaid. At his death, Harold and his wife, Agnes, owned their home in joint tenancy. Agnes continued to reside in the home. The State recorded a notice of lis pendens against the property, and filed a petition seeking to impose a lien in the amount of $144,475.76 […]

Beverly Tutinas’s husband, Julian, was on Medicaid, but she was not. When Beverly died owning a home valued at $69,641.89 and a car worth $2,000, the state of Illinois filed a claim against Beverly’s estate, seeking to recover what Medicaid had invested in Julian’s care. The court found that, although the state clearly had a […]

Seeking to increase the Community Spouse Resource Allowance (CSRA), the Staffords conveyed their home to a trust. After Mr. Stafford was institutionalized, the trust conveyed the home to Mrs. Stafford. The purpose of the transaction was to make the home countable during the resource assessment, thereby increasing the value of the marital assets; in Idaho […]

Robert and Josephine James were married when Robert went to the nursing home. A resource assessment was done and Medicaid determined they had $278,343 in available resources. To reduce their assets, Josephine purchased a $250,000 single premium immediate irrevocable annuity from General Electric Assurance Company. She then purchased a new vehicle for $8,550 and filed […]

(a) For purposes of this Code section, the term “property” includes any interest in property and any power over or right with respect to the property. (b) Any person to whom an interest in property is transferred or who succeeds to property by contract or by operation of law may renounce the property in whole […]

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