Court Affirms Penalty Period For Transfer of Joint Tenancy Without Compensation

Rodney Fimon transferred his house to himself and his two sons as joint tenants in a deed he issued in May 2003. Fimon then issued another deed in July 2009 that transferred the property to his two sons and reserved a life estate for himself. The later deed also stated it was intended to correct the previous deed. Fimon applied for Medical benefits a few month later, and the state imposed a penalty period after it determined that Fimon transferred a joint tenancy without compensation.

In Fimon v. Commissioner of Minnesota Department of Human Services (Minn. App. Ct., No. A11–561, Oct. 24, 2011), the Minnesota Court of Appeals affirmed, finding that Fimon transferred his joint tenancy for less than market value and that the 2009 deed did more than correct an error since the 2003 deed already reserved a life estate for Fimon.

See Court Rejects Claim That Transfer Reserving Life Estate Simply Corrected Earlier Deed, Elder Law Answers, Nov. 1, 2011.