Probate & Trust Law Section Conference Manual ... - Minnesota CLE

Attorney Sally K. Mortenson of Burnsville, MN, represented the Estate.
PRACTICE TIP: To avoid the result in the Grote case, do not allow marital
assets to remain in joint tenancy between husband and wife once one of them
starts receiving medical assistance benefits. Transfer all assets to the
community spouse as soon as possible, except the checking account where the
recipient’s Social Security and other income is deposited. There is no penalty
for transferring assets between husband and wife at any time. 42 U.S.C. §§
1396p(c)(2)(A)(i) and 1396p(c)(2)(B)(i). Make sure this happens before the
MA recipient spouse dies or the Grote case will apply.
C. ESTATE OF PERRIN
The Perrin court upheld the district court’s reliance on the Barg case and the
doctrine of collateral estoppel to deny a Medical Assistance claim asserted under
Minnesota’s spousal liability statute (Minn. Stat. § 519.05). In re: Estate of
Richard L. Perrin, 796 N.W.2d 175 (Minn. Ct. App. 2011), review denied
(Minn. June 28, 2011). Attorney David E. Culbert of Minneapolis, MN,
represented the Estate.
D. ESTATE OF RUDDICK
The facts in the Estate of Ruddick were not disputed. Wife died in March 2008
after receiving over $165,000 in Medical Assistance benefits. Husband died in
January 2010 and the homestead was the sole probate asset. Husband received
no Medical Assistance benefits. At wife's death, she and husband jointly owned
a bank account with a balance of less than $3,000. The homestead was owned
solely by the husband at the wife's death. The Ramsey County collection unit
filed a claim pursuant to Minn. Stat. §§ 256B.15 and 519.05 against the
husband's estate for the entire amount of Medical Assistance provided to the
wife. The Minnesota Department of Human Services intervened of right as a
party to the case. The Personal Representatives partially allowed the Medical
Assistance claim in the amount $840.64, the net amount that transferred to
husband at the wife's death after subtracting wife's funeral and burial expenses.
This partial allowance was made based on the holdings of In re Estate of Barg,
752 N.W.2d 52 (Minn. 2008).
The parties stipulated to the facts and the Estate filed a motion for summary
judgment. The County claimed that Minnesota's spousal liability statute, Minn.
Stat. § 519.05, independently authorized a Medical Assistance claim against the
surviving spouse's estate. The Estate claimed that the County was collaterally
estopped from re-litigating whether a claim could be asserted under Minn. Stat.
§ 519.05 because the issue had already been litigated and decided against such a
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