[WSBAPT] Medicaid Asset Recovery for Life Estate

Jeff Davis jeff at bellanddavispllc.com
Wed Jul 22 14:28:24 PDT 2015


How does a claim against the life estate work?  In January 2006 Client’s mother gifted her home to sons reserving a life estate.  Mother applies for Medicaid in late 2014.  State now wants to file lien.  On what?

 

 

Jeff Davis

 

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Chris Moore
Sent: Wednesday, July 22, 2015 2:10 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Medicaid Asset Recovery for Life Estate

 

I haven’t looked at Washington’s WACs recently on this point, but in Idaho there is a difference between a purchased life estate and a gift of property with a retained life estate.  Idaho only claims an interest in a retained life estate that was created by gift of the remainder interest.  I think that is common with most states.

 

Sincerely,

Chris J. Moore
Christopher J. Moore, JD, CPA, AEP®, EPLS*
Creason, Moore, Dokken & Geidl, PLLC
Lawyers
1219 Idaho Street, POB 835
Lewiston, Idaho 83501-0835
Phone: 208-743-1516; Fax: 208-746-2231
Website:  <http://www.cmd-law.com/> www.cmd-law.com

*Certified as an Estate Planning Law Specialist by the Estate Law Specialist Board, Inc., the only estate planning certification entity approved by both the American Bar Association and the Idaho State Bar Association.
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Josh Grant
Sent: Wednesday, July 22, 2015 1:56 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Medicaid Asset Recovery for Life Estate

 

Life estates have to be created prior to 7/1/05 in order to be excluded.

 

From: Susan Spuller <mailto:susan at pepetersonlaw.com>  

Sent: Wednesday, July 22, 2015 12:54 PM

To: wsbapt at lists.wsbarppt.com 

Subject: [WSBAPT] Medicaid Asset Recovery for Life Estate

 

PC’s mother is no longer able to live alone safely, and he wants to move her into his home so that he can provide care.  There is an unfinished portion of the house that will require remodeling to accomplish this.  Mom has said that she will sell her own house to pay for the remodel so that can happen.  If mom purchases a life estate in his home in order to provide him with the funds to finish the basement, I believe that should avoid a transfer penalty (assuming that she makes it her legal residence and resides there for at least a year).  Am I correct?  Also, is a life estate that is purchased in this way, as opposed to retained in the applicant’s own home, treated any differently for asset recovery purposes?  I don’t think they will want to go the life estate route if there is a potential for a lien on their home for the value of mom’s life estate.  Thanks for any assistance. 

 

Susan E. Spuller

Of Counsel

 

Law Office of Paulette Peterson, PLLC

7869 Hansen Road

Bainbridge Island, WA  98110

206.855.9293

Fax: 206.855.9295

 

The information contained in this email is confidential and may also be attorney-client privileged. The information is intended only for the use of the individual or entity to whom it is addressed. If you are not the intended recipient, or the employee or agent responsible to deliver it to the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this email in error, please immediately notify me by replying to this email and delete the original. Thank you.

 

 

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