A Washington appeals court holds that a husband may not receive payment for home maintenance costs from an account set up to pay for his wife's long-term care, even though the result may be foreclosure on the home and the end of payments to the account. In re Guardianship of Plotke (Wash. Ct. App., No. 42984-5-II, Sept. 4, 2013).
Carolyn Plotke was declared a vulnerable adult, and a protection order was entered against her husband, Leo. After Mrs. Plotke moved to a nursing home, the court appointed a guardian of the person and the estate. Mr. Plotke entered into an agreement in which he agreed to be financially responsible for Mrs. Plotke's long-term care needs and Mrs. Plotke agreed to transfer her assets to Mr. Plotke so she could qualify for Medicaid. The agreement stated that if Mr. Plotke became unable to pay for Mrs. Plotke's care, he would get a reverse mortgage. Mr. Plotke obtained a reverse mortgage, but he failed to use the money to pay for Mrs. Plotke's care.
The court ordered Mr. Plotke to put the money into an Interest on Lawyer Trust Account (IOLTA) account for Mrs. Plotke's benefit. Mr. Plotke moved to disburse funds from the account to pay for property taxes, homeowner's insurance, hot water heater repair, and attorney's fees. The court approved the property taxes, but denied the remaining requests. Mr. Plotke appealed, arguing that his house would be foreclosed on if the payments were not made.
The Washington Court of Appeals affirms, holding that the funds should not be disbursed to Mr. Plotke for home maintenance. According to the court, the agreement clearly outlines Mr. Plotke's responsibility for Mrs. Plotke's medical bills and does not provide for Mr. Plotke's home maintenance costs to be paid out of the IOLTA account.
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