New York Court Holds that Medicaid Penalty Triggered by Transfer to Daughter Without Written Agreement

Bernadette Jordan applied for Medicaid and began living in a nursing home. The state of New York found Jordan was not eligible for Medicaid benefits for a period lasting over a year because she had transferred funds to her daughter from a revocable trust for less than fair market value. The nursing home requested a hearing, arguing that Jordan’s daughter had paid documented expenses for Jordan and the transfer was simply repayment for these expenses. The nursing home further argued that Jordan’s daughter paid Jordan’s expenses with the expectation of repayment.

The hearing officer held that the transfer was below fair market value for purposes of Medicaid eligibility. The trial court affirmed the hearing officer’s holding, and the nursing home appealed.

In In Matter of Komanoff Ctr. For Geriatric & Rehabilitative Medicine v. Daines, (N.Y. Sup. Ct., App. Div., 2nd Dept., No. 2010-05776), a New York appeals court affirmed the trial court’s ruling. The court stated that no presumption of expectation of repayment for the past financial assistance existed because the two women did not have a contemporaneous written agreement providing for such repayment.

Transfer to Daughter Without Written Agreement Triggers Medicaid Penalty, Elder Law Answers, Jul. 5, 2011.