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<p class="MsoNormal"><span style="font-size:12.0pt">The issue is that the life estate, like real estate is an asset against which the state can file a lien and recover benefits paid.
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<p class="MsoNormal"><span style="font-size:16.0pt;font-family:"Vladimir Script";color:#1F497D">Heather S. de Vrieze</span><b><span style="font-size:16.0pt;color:#1F497D"><br>
</span></b><i><span style="font-family:"Garamond",serif;color:#1F497D">Attorney-at-Law<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Garamond",serif;color:#1F497D"><img width="189" height="105" style="width:1.9701in;height:1.0895in" id="Picture_x0020_6" src="cid:image001.jpg@01D67D22.D9977470"></span></i><i><span style="font-size:12.0pt;font-family:"Garamond",serif;color:#1F497D"><o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">3909 California Avenue SW<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">Seattle, WA 98116-3705
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">(206)938-5500
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Roger Hawkes<br>
<b>Sent:</b> Thursday, August 27, 2020 6:26 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Life estate and Medicaid question<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">As a practical matter, Medicaid can just value the life estate and count that as an asset. Is the high threshold for real estate holdings not applicable to life estates?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Roger Hawkes, WSBA # 5173<o:p></o:p></p>
<p class="MsoNormal"><i><span style="font-size:14.0pt">Shoreline</span></i> Office: 19944 Ballinger Way NE<o:p></o:p></p>
<p class="MsoNormal"> Shoreline, WA 98155<o:p></o:p></p>
<p class="MsoNormal"><i><span style="font-size:14.0pt">Sultan</span></i> Office: 423 Main<o:p></o:p></p>
<p class="MsoNormal"> Sultan, WA 98294<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Phone: 206 367 5000; fax: 206 367 4005<o:p></o:p></p>
<p class="MsoNormal">Email: <a href="mailto:roger@law-hawks.com">roger@law-hawks.com</a>
<o:p></o:p></p>
<p class="MsoNormal">Web site: <a href="http://www.hawkeslawfirm.com">www.hawkeslawfirm.com</a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">.<o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">
wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Marcus Fry<br>
<b>Sent:</b> Thursday, August 27, 2020 2:46 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBAPT] Life estate and Medicaid question<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><a name="_GoBack"></a><span style="color:#1F497D">Interest in life estate is recoverable in Medicaid. Your client should be doing a special needs trust, that directs trustee to provide housing for CIR (I usually include provisions that
beneficiary is responsible for taxes, insurance utilities and minor repairs in connection with right to reside) and if CIR no longer needs housing, then house is sold and X% goes to Y group of individuals and the remainder stays in the trust for benefit of
CIR.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">SNTs can be first party or third party. This situation calls for a third party (because the trust is funded with assets of someone other than the beneficiary), so the beneficiary’s age is irrelevant.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="text-align:justify"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">Marcus J. Fry<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">Lyon, Weigand & Gustafson, P.S.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">P.O. Box 1689
<br>
Yakima, Washington 98907 <br>
Telephone: (509) 248-7220 <br>
Facsimile: (509) 575-1883 <o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><o:p><span style="text-decoration:none"> </span></o:p></span></u></b></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">mailto:wsbapt-bounces@lists.wsbarppt.com</a>]
<b>On Behalf Of </b>Candace Wilkerson<br>
<b>Sent:</b> Thursday, August 27, 2020 2:22 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> [WSBAPT] Life estate and Medicaid question<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hi Listmates,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I have a WA client who wants to leave a life estate for her CIR partner in her will, allowing him to live in the house titled in her name after her death as long as he wishes to do so (he is to pay the home’s expenses, including the property
taxes—mortgage is paid off). She also wants to leave him a percentage of the house sale proceeds if he leaves the house before his death, at which time the house is to be sold. The problem, as I see it, is that it’s entirely likely that her partner will
need to go on Medicaid for long-term care at some point around the time he might receive the life estate and/or the proceeds. He is already in his late 60s.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Question 1:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Would a life estate be considered a possessory interest that might disqualify her partner from receiving Medicaid benefits? It doesn’t seem like it, since if he needs long-term care most likely he would be moving out of the house anyway.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Question 2:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If he is already over 65 years old, could she still create a third-party special needs trust for his benefit into which to place the house sale proceeds going to him? And if so, could she simply make this provision in her will for the
creation of the SNT if needed after her death? I have worked with SNTs for people under 65, but wasn’t clear on whether they could still be created by a third party for someone over that age.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks in advance!<o:p></o:p></p>
<p class="MsoNormal">Candace<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black">Top Ranked Law Firm for 2015 by Fortune Magazine and American Lawyer Media</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:black">Candace Wilkerson<b> |</b> Senior Associate</span><b><span style="font-size:10.0pt;color:red"> </span></b><b><span style="font-size:10.0pt;color:#484848">|
</span></b><span style="font-size:10.0pt;color:black">Wong Fleming </span><o:p></o:p></p>
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