An Ohio appeals court rules that a promissory note held by a Medicaid applicant's spouse is a countable resource, finding that the state law excluding promissory notes from countable resources applies only to promissory notes held by Medicaid applicants, not their spouses. Estate of Montgomery v. Ohio Department of Job and Family Services (Ohio Ct. App., 5th Dist., No. 11 CAH 06 0054, Feb. 14, 2012).
When Vivian Montgomery entered a nursing home, her husband purchased a promissory note for $50,000. The state approved Mrs. Montgomery’s Medicaid application, but found the promissory note was an available resource and imposed a penalty period.
Mrs. Montgomery requested a hearing, but died before a hearing officer affirmed the state’s decision. The trial court also affirmed, and Mrs. Montgomery's estate appealed. It argued that the promissory note was part of the couple’s resources and therefore an excludable asset under state Medicaid law, which provides that promissory notes held by Medicaid applicants or recipients are not countable resources if they meet certain criteria.
The Ohio Court of Appeals affirms, holding that the promissory note was not an excludable asset. According to the court, because the promissory note was held by the community spouse instead of the Medicaid applicant, the state law excluding some promissory notes from countable resources did not apply. The court is unpersuaded by Ohio court rulings that have found annuities held by a community spouse to be excludable.
The Montgomery estate was represented by William J. Browning of the ElderLawAnswers member firm of Browning, Meyer & Ball Co., LPA, in Worthington, Ohio.
For the full text of this decision in PDF, go to: https://www.fifthdist.org/feb132012/Montgomery.pdf
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