Below, in chronological order, is a list of some of the most important elder law decisions for 2021. Interestingly, all but one of the decisions were favorable to the elder, Medicaid recipient or their family.
Medicaid Applicant’s Transfers to Her Children Before She Became Ill Not Subject to Penalty Period
A New York appeals court holds that transfers made by a Medicaid applicant before she was diagnosed with Parkinson’s disease were not transfers for less than market value, but that she failed to rebut the presumption that transfers made after the diagnosis were made in order to qualify for Medicaid. Underwood v. Zucker (N.Y. Sup. Ct., App. Div., 4th Dept., No. 749 TP 20-00184, Feb. 12, 2021). To read the full summary and click through to the full text, click here.
Mother’s Transfer of House to Son Who Worked Outside the Home Qualifies for Caretaker Child Exemption
A New Jersey appeals court holds that a Medicaid applicant’s transfer of her interest in her house to her son qualifies for the caretaker child exemption even though the son worked outside the home and hired aides to help care for his mother. A.M. v. Monmouth County Board of Social Services (N.J. Super. Ct., App. Div., No. A-5105-18, March 11, 2021). To read the full summary and click through to the full text, click here.
Medicaid Application Properly Denied for Failure to Verify the Purpose of Recurring Transactions That May Have Been a Scam
A New Jersey appeals court rules that the Medicaid agency properly denied an application for failing to verify recurring transactions on the applicant’s bank statement even though the transactions may have been part of a scam. G.M. v. Division of Medical Assistance and Health Services (N.J. Super. Ct., App. Div., No. A-0433-19, June 16, 2021). To read the full summary and click through to the full text, click here.
Bankruptcy Court Allows Discharge of Son’s Nursing Home Debt; Not Required to Spend All of Mother’s Assets on Her Care
A U.S. bankruptcy court rules that a son’s judgment debt to a nursing home for his mother’s care is dischargeable in bankruptcy, finding that the son’s failure to apply all of his mother’s income and assets towards her care did not constitute an attempt to defraud the facility. Geriatric Facilities of Cape Cod, Inc. v. Georges (Bankr. D. Mass., No. 19-01096-MSH), June 22, 2021). To read the full summary and click through to the full text, click here.
Federal Law Preempts Minn. Law Treating Irrevocable Trusts as Revocable for Medicaid Purposes
A Minnesota appeals court rules that a state statute deeming irrevocable trusts to be revocable for the purposes of a Medicaid eligibility determination is preempted by federal law governing irrevocable trusts. Geyen v. Commissioner Minnesota Dept. of Human Services (Minn. Ct. App., No. A20-1300, July 12, 2021). To read the full summary and click through to the full text, click here.
Resident’s Son Not Liable for Breach of Contract Because He Did Not Cause His Mother to Be Ineligible for Medicaid
A New York appeals court rules that a nursing home resident’s son who signed an admission agreement, agreeing to take all necessary steps to provide documentation for his mother’s Medicaid application, is entitled to summary judgment in a breach of contract claim by the nursing home because there was no evidence his actions caused her to be ineligible for Medicaid. Wedgewood Care Center, Inc. v. Kravitz (N.Y. Sup. Ct., App. Div., 2nd Dept., No. 2017-12681, Aug. 18, 2021). To read the full summary and click through to the full text, click here.
Scrivener’s Error and Limited Power of Appointment Do Not Make Property Available to State to Recoup Medicaid Benefits
A Massachusetts land court rules that the state cannot recoup Medicaid benefits from a Medicaid recipient’s property that was left in a life estate that had a scrivener’s error and included a limited power of appointment. Estate of Koutoukis v. Secretary of the Executive Office of Health and Human Services (Mass. Land Ct., Dept. of the Trial Ct., No. 20 MISC 000004 (RBF), Sept. 17, 2021). To read the full summary and click through to the full text, click here.
Nursing Home Did Not Prove That Transfers from Resident to Agent Under a POA Were Fraudulent
An Ohio appeals court rules that a nursing home failed to prove that assets transferred from a nursing home resident to her agent under a power of attorney were fraudulent transfers because the agent testified credibly that she was acting according to the resident’s authority. Montefiore Home v. Fields (Ohio Ct. App., 8th Dist., No. 110183, Oct. 21, 2021). To read the full summary and click through to the full text, click here.
Promissory Note Executed by Nursing Home Resident’s Daughter Is Not Illegal Third-Party Guarantee
A Kentucky appeals court holds that a promissory note executed by a nursing home resident’s daughter, agreeing to pay the nursing home for the resident’s outstanding expenses, is not illegal because there was no evidence her mother’s stay in the nursing home was conditioned on her signing the note. Roberts v. Mt. Washington Health Care, LLC (Ky. Ct. App., No. 2020-CA-1190-MR, Oct. 29, 2021). To read the full summary and click through to the full text, click here.
Nursing Home Resident’s Son Who Got TOD Account Not Liable to Facility Under Ohio’s Fraudulent Transfer Law
An Ohio appeals court holds that the son of a nursing home resident is not liable to the nursing home under Ohio’s fraudulent transfer law for the resident’s unpaid bill because although the mother transferred her investment account to him on her death, the transfer did not leave her insolvent. Kingston of Miamisburg, LLC v. Jeffrey (Ohio Ct. App., 2nd Dist., No. 29021, Nov. 19, 2021). To read the full summary and click through to the full text, click here.
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