New York State law mandates recovery from the estate of a Medicaid recipient who is 55 or older, and permits recovery from the estate of a Medicaid recipient's spouse except in the following circumstances: No recovery may be made during the lifetime of the Medicaid recipient's surviving spouse, or at a time when the recipient has a surviving child who is under 21 years of age or who is certified blind or certified disabled.
The Surrogate's Court, Nassau County, recently decided “In the Matter of the Estate of Leon Schneider” that involves recovery from the estate of a Medicaid recipient's spouse. Zeena Schneider received Medicaid coverage in a nursing home from June 10, 1996 until her death on December 2003. Zeena's husband, Leon, died before her, on October 3, 2002.
The Department of Social Services filed a claim against Leon's estate for $386,382.77 for assistance provided to Zena until her death. Leon's Last Will and Testament created a supplemental needs trust, in which he left the sum of $15,000, for his mentally retarded son, Marc.
When an individual who has a spouse applies for Medicaid, if the spouse has “sufficient ability” to pay for care, the furnishing of medical assistance to the sick spouse creates an implied contract with such relative. There remains a difference of opinion as to the definition of “sufficient ability”. However, the Court determined that Leon Schneider had sufficient means to pay for his wife's care.
It was determined that Leon was responsible for Zeena's care until the date of his death in 2002 (not until the date of her later death).
The Court also confirmed the decision in Matter of Samuelson, a case in which the Court ruled that the Department of Social Services is only precluded from recovery against the estate of a recipient survived by a disabled child if the disabled child is financially dependent upon the recipient prior to her death.
As such, the court found no evidence that Marc was dependent on Zeena or Leon.
The decision is an unfortunate one for individuals who may require Medicaid benefits and who have disabled children. It highlights the need for planning for disabled children prior to one's death. An elder law attorney can provide vital assistance to help individuals to deal with such issues and to properly provide for the care of disabled children.
Ronald A. Fatoullah, Esq. is the principal of Ronald Fatoullah & Associates, a law firm that concentrates in elder law, estate planning, Medicaid planning, guardianships, estate administration, trusts and wills. The firm has offices in Forest Hills, Great Neck, and Brooklyn, NY. Mr. Fatoullah has been named a “fellow” of the National Academy of Elder Law Attorneys and is a former member of its Board of Directors. He also serves on the Executive Committee of the Elder Law Section of the New York State Bar Association. Mr. Fatoullah has been certified as an Elder Law Attorney by the National Elder Law Foundation. Mr. Fatoullah currently chairs the Legal Committee of the Alzheimer's Association, LI Chapter and is a co-founder of Senior Umbrella Network of Queens. This article was written with the assistance of Debby Rosenfeld, Esq., a senior staff attorney at the firm. The firm can be reached by calling 718-261-1700 or 516-466-4422, or toll free at 1-877-ELDER-LAW or 1-877-ESTATES.
* Certified as an Elder Law Attorney by the National Elder Law Foundation.
