Court Invalidates Oregon's Attempt to Include Interspousal Transfers in Expanded Definition of Estate Recovery

Tim Nay

In a case brought by ElderLawAnswers member attorney Tim Nay, an Oregon appeals court has ruled that the state's expanded definition of estate recovery that included transfers between spouses made before the Medicaid recipient died violates federal and state law. Nay v. Department of Human Services (Or. Ct. App., No. A150722, Nov. 26, 2014).

In 2008, Oregon expanded its definition of estate for Medicaid estate recovery purposes. The new definition included interspousal transfers made within 60 months of the date of request for benefits.

Portland ElderLawAnswers member attorney Tim Nay challenged the law, arguing that it exceeded the state's statutory authority because it included assets that were transferred before the Medicaid recipient's death.

The Oregon Court of Appeals holds that the challenged amendments to the estate recovery law exceed federal and state authority and are invalid. The court concludes that federal and state estate recovery law require that the Medicaid recipient have an interest in the property being recovered at the time of his or her death. According to the court, by "including the 'interspousal transfer' text in the pool of assets from which the state can recover from the surviving spouse's estate, the rule includes assets that necessarily were transferred before the recipient's death."

For the full text of this decision, go to: https://www.publications.ojd.state.or.us/docs/A150722.pdf

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