A Massachusetts appeals court rules that a Medicaid applicant was subject to a penalty period for assets that were transferred to a trust as part of a court-approved estate plan and the penalty period began after she had spent down her excess assets. Lombardi v. Director of Office of Medicaid (Mass. App. Ct., No. 11–P–1208, April 17, 2012).
Catherine Lombardi, who was under guardianship, transferred $17,400 to a realty trust to benefit her children as part of a court-approved estate plan. Mrs. Lombardi applied for Medicaid benefits, and the state assessed a penalty period based on the transfer. The state also found she needed to spend down her excess assets before the penalty period would begin.
Ms. Lombardi appealed the penalty period, arguing that the court cannot consider a court-approved transfer of assets when determining eligibility and that the state improperly imposed a double penalty.
The Appeals Court of Massachusetts affirms, holding that the penalty period is proper. According to the court, it did not matter that the transfer was "court-approved" because "a probate judge cannot insulate asset transfers from being considered in the determination of eligibility for [Medicaid]." The court also rules that the penalty period properly began after Ms. Lombardi spent down her excess assets.
For the full text of this decision, go to: https://attorney.elderlawanswers.com/full-text-of-opinion-in-lombardi-v-director-of-office-of-medicaid-mass-ct-app-no-11p1208-april-17-2012-9835
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