The Bench & Bar magazine is published to provide members of the KBA with information that will increase their knowledge of the law, improve the practice of law, and assist in improving the quality of legal services for the citizenry.
Issue link: https://kentuckybenchandbar.epubxp.com/i/132126
Life Insurance Medicaid claims entitlement to life insurance proceeds payable to a named beneficiary if the Medicaid recipient was the owner of the policy. They are not presently attempting to enforce this claim because they probably would not succeed. KRS 304.14-300 exempts the proceeds of life insurance from the claims of creditors. Medicaid is a creditor. Life insurance payable to the Medicaid recipient's estate, as opposed to a named beneficiary, is within Medicaid's reach. IRAs Kentucky law does not permit an estate recovery claim against IRAs. They are exempt assets throughout the Medicaid process regardless of the type of investment in which they are held. Life Estates Medicaid may stake a claim to the value of the life estate at the moment before death and they may litigate this claim if it is not settled. NEGOTIATING AN ESTATE RECOVERY CLAIM In estate recovery matters, clients may have little expectation of seeing a dime. They already know the decedent was on Medicaid and that estate recovery will come knocking. If Medicaid litigates, make sure you have a legal basis for your position. Our firm limits initial representation to negotiation only. In Kentucky, estate recovery litigation is rare. There is a twostep alternative process: 1. File for a hardship exception 2. Buy a lottery ticket. It is this attorney's opinion that chances for success are equal. B&B; 1 2 3 4 5 6 See Social Security Act, Title XIX (1965) at "Social Security Act Amendments of 1965", Pub.L. 89-97, 79 Stat. 286, codified as amended at 42 U.S.C. Ch. 7, Subch. XIX. See http://www.cms.hhs.gov/. See http://chfs.ky.gov/default.htm. See http://chfs.ky.gov/dms/default.htm. See http://chfs.ky.gov/dcbs/default.htm. See generally Joshua M. Wiener, PhD et al, Home and Community-Based Services in Seven States, 23 Health Care Fin. Rev. 89-114 (2002). See also "Home and Community Based Waiver Services" at http://chfs.ky.gov/dms/mws.htm. Bernard M. Faller, Esq., 7 See generally 8 U.S.C. § 1641(a), (b) (2008). See generally 42 U.S.C. § 1382c (2004). 9 See 907 KAR 1:011. 10 See 907 KAR 1:022, § 4 for detailed LoC requirements. 11 See generally 907 KAR 1:640. 12 Members of the Kentucky Bar are welcome to contact us for a copy of a QIT at misty@kyelderlaw.com. There is no charge for our QIT, and you can use it as many times as you wish. 13 See 42 U.S.C. § 1382c. 14 See 907 KAR 1:650 § 2(11). 15 Id. 16 See 907 KAR 1:650 §2(13), 14). 17 Please note, the $50,500 estate recovery asset exemption for the home ended quite a while ago, effective September 2003. 8 All Kentucky Administrative Regulations (found at http://www.lrc.state.ky.us/kar) and all other websites referenced in this article were accessed as of March 27, 2013. Misty Clark Vantrease received her B.A., summa cum laude, from Murray State University in 1998 and graduated from the University of Louisville Louis D. Brandeis School of Law in 2001. Vantrease spent 10 years as an assistant public defender; first in the general trial division and then in the capital division. Vantrease is a partner at Kentucky Elderlaw and focuses her practice entirely on elder law issues. She assists older citizens and their family members on a wide range of issues including nursing homes, Medicaid, asset preservation, legal documents, guardianship, probate and related matters. She is the chair-elect of the Elder Law Section of the Kentucky Bar Association, and is a member of the National Association of Elder Law Attorneys, and the Probate Section of the Kentucky Bar Association. is an elder law attorney in Louisville, serving the needs of older citizens directly, or through consultation with family members, His practice encompasses Medicaid planning and asset preservation within the ever shifting rules, Medicaid qualification interviews, wills, durable powers of attorney and other document preparation focused on the special needs of older citizens (as opposed to a tax focus), nursing home issues and extensive family hand holding. He is the founder of Kentucky Elderlaw, PLLC, the largest elder law firm in Kentucky. Faller holds a Bachelor of electrical engineering degree from Rensselaer Polytechnic Institute (1967), a Master of Science degree in electrical engineering from New York University (1970) and received his J.D degree from the University of Louisville Louis D. Brandeis School of Law in 2001. Faller is the past chair of the Elder Law Committee of the Kentucky Bar Association, a co-author of Vol. 23 of the Kentucky Practice Series, Elder Law in Kentucky, published by Thompson Reuters, released in March 2010 and updated in March 2013 and is an adjunct professor of law at the University of Louisville Louis D. Brandeis School of Law. FIDUCIARY ACCOUNTINGS MADE PROFITABLE: High quality, comprehensive accountings for trusts, estates, and guardianships coupled with an efficient process ensuring speed and accuracy. Our service lowers your costs, saves your time, and improves your reputation. And that will . . . INCREASE YOUR PROFITS Call or write today to see a sample estate accounting: Stephen J. Matteucci, J.D., LL.M. sjm@accurateaccountings.com (502) 365-4506 13 'Decedent's Name'." The Personal Representative should receive a letter within two weeks stating that the claim has been settled in full. If you do not receive the letter, follow up directly with the person with whom you were negotiating. B&B; • 05.13