[WSBAPT] OFR lien recovery

[Candace Wilkerson]

Not in WA.  However, when I was in Idaho there was some discussion of this, because a lot of states (including CA) do have laws that could hold children responsible for paying for their parents' care.  They are called "filial responsibility laws," and I just looked up the following article:

https://www.nerdwallet.com/blog/banking/broke-parents-medical-debts/

In PA, the court actually found an adult child liable for $93,000 of his mother's nursing home debt!  At least according to the article.

One other thing: I advise my adult children clients to be careful about filling out forms (such as medical, nursing home, etc.) asking for the "responsible party."  I would imagine, although I haven't actually litigated it, that if an adult child acting as a fiduciary for a parent signs such a form, the entity might be able to hold the child responsible.  I always tell them only to fill it out as "[Name] as attorney-in-fact, guardian, etc."

Does anyone have any experience with the "responsible party" becoming the adult child from signing such a thing?

Candace Wilkerson

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Marcus Fry
Sent: Wednesday, November 20, 2019 2:43 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] OFR lien recovery

The bar stool advisors should not get paid anything for that advice:)  Children are not liable for their parents' debts unless they guaranteed them or were gifted assets and the gift arises to a fraudulent transfer to avoid creditors.

However, in this instance, no inheritance, no liability to the kids.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
P.O. Box 1689
Yakima, Washington  98907
Telephone:  (509) 248-7220
Facsimile:  (509) 575-1883

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Mike Winslow
Sent: Wednesday, November 20, 2019 2:33 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] OFR lien recovery

Client's mom passed away, owning a house. The house does not have enough equity to pay the 1st mortgage lender and the OFR lien.
If First Mortgage lender forecloses, is there any way OFR can make the family pay the debt.
There are no other assets; no non-probate assets delivered directly to the children.

Kids have been told by bar stool advisors that they will have to pay the OFR if the house goes to foreclosure. I know of no reason the kids would have to pay mom's Medicaid debt.
Is there something I don't know?

Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com<mailto:Mike at winslegal.com>

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