In the Matter of the Estate of Wirtz (N.D., No. 990275, March 21, 2000)

The Supreme Court of North Dakota rules that any assets conveyed by a Medicaid recipient to his wife before his death are subject to recovery. In the Matter of the Estate of Wirtz (N.D., No. 990275, March 21, 2000).

Clarence Wirtz received Medicaid benefits to pay for nursing home care from July 1996 until his death on August 24, 1997. Mr. Wirtz's wife, Verna, died on September 21, 1998. The North Dakota Department of Human Services filed a claim against Mrs. Wirtz''s estate seeking reimbursement for benefits paid to her husband. The personal representative of Mrs. Wirtz's estate denied the claim. At a hearing, The Department argued that Mrs. Wirtz''s entire estate was subject to recovery because Mr. Wirtz had a marital or equitable interest in all of her property at the time of his death. The personal representative moved to dismiss, arguing that any asset not transferred by the Medicaid recipient at death to the surviving spouse through joint tenancy, tenancy-in-common, survivorship, life estate, or living trust is not subject to recovery.. The trial court denied the Department''s claim, determining that at the time of his death, Mr. Wirtz had no legal title or interest in any of the property in Mrs. Wirtz's estate. The department appealed.

The Supreme Court of North Dakota rules that any assets that Mr. Wirtz conveyed to his wife before his death and that are traceable to her estate are subject to the Department''s recovery claim. However, the court holds that only those assets in which Mr. Wirtz once held an interest can be traced. Separately-owned assets in Mrs. Wirtz's estate, or assets in which Mr. Wirtz never held an interest, are not subject to the Department''s claim for recovery, the court rules. In determining which assets in Mrs. Wirtz''s estate are subject to recovery, the court sought to interpret 42 U.S.C.. 1396p(b)(4)(B). Finding that the words "interest" and "other arrangement" are ambiguous, the court looked to the legislative intent in reaching its decision. The court remands the case to allow the Department to present evidence concerning asset traceability.