A California appeals court holds that a three-year statute of limitations (SOL) applies to the state's claim to recover Medicaid benefits from the trust of a deceased nursing home resident instead of a more recently enacted one-year SOL that applies to claims that arise under a promise with a decedent to distribution from an estate. Maxwell-Jolly v. Martin (Cal. App. Ct., 1st. Dist., No. A128711, Aug. 11, 2011).
Bunnie Gregoire transferred her home to a revocable trust. Several years later she entered a nursing home and applied for Medicaid benefits. Ms. Gregoire died on November 10, 2005. On November 10, 2008, the state filed a complaint seeking reimbursement of Medicaid benefits.
Ms. Gregoire's estate argued that a one-year SOL applies to the state's claim. Under state law, a claim that arises under a promise or agreement with a decedent to distribution from an estate or trust must be filed within one year. The state countered that claims involving a liability created by statute have a three-year SOL. The trial court granted the state summary judgment. The estate appealed, arguing the more recently enacted one-year SOL applies because Ms. Gregoire voluntarily agreed to accept Medcaid benefits in exchange for her promise to allow the state to recoup those benefits from her estate.
The California Court of Appeals affirms, holding the three-year SOL applies to estate recovery cases. According to the court, the claim did not arise from a promise by Ms. Gregoire to make a distribution from her trust because the state "was statutorily entitled--indeed required--to recoup the benefits paid on [Ms.] Gregoires behalf regardless of any 'agreement' on her part."
For the full text of this decision in PDF, go to: https://www.courtinfo.ca.gov/opinions/documents/A128711.PDF
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