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

Small Estates Panel
Peter M. Hendricks
Garvey, Boggio & Hendricks, P.A.
Medical Assistance Provided to Predeceased Spouse and Claims Against the Estates of Surviving
Spouses
A. Medical Assistance recipient died prior to July 1, 2009
1. If the surviving spouse also died prior to July 1, 2009, then the case is controlled by
the Minnesota Supreme Court decision of In re Estate of Francis E. Barg, 752 N.W.2d
52 (Minn. 2008) and the Minnesota Court of Appeals decision of In re Estate of
Richard L. Perrin, 796 N.W.2d 175 (Minn. App. 2011). Barg holds that the amount
of the Medical Assistance claim that can recovered from the surviving spouse’s estate
is limited to the value of assets that transferred to the surviving spouse as a result of
the death of the Medical Assistance recipient. Perrin holds that the County is barred
by the doctrine of collateral estoppel from relitigating an issue argued in Barg.
2. If the surviving spouse died after July 1, 2009, the county may attempt to apply the
2009 amendments to Minn. Stat. § 519.05 as the basis of recovering Medical
Assistance benefits from the surviving spouse’s estate. Following the Barg decision,
the Minnesota Legislature amended Minn. Stat. §§ 256B.15 (Medical Assistance
estate recovery statute) and 519.05 (spousal liability statute) seeking to expand
Medical Assistance estate recovery. The amendments to Minn. Stat. § 256B.15 only
apply to Medical Assistance recipients who died on or after July 1, 2009. The 2009
amendment to Minn. Stat. § 519.05(a) only added the following language:
“…including any claims arising under section … 256B.15 …”
3. In re: Estate of Donald K. Ruddick, Ramsey County District Court File No.: 62-PR-
10-183 (March 2, 2012). This is the first known district court decision involving a
Medical Assistance claim against the estate of a surviving spouse who died after July
1, 2009 for Medical Assistance provided solely to a predeceased spouse who died
prior to July 1, 2009.
Janis Ruddick received Medical Assistance benefits in the amount of $165,504.63
and she died in March 2008 survived by her husband, Donald. The only asset in
which Janis had any ownership interest was a jointly owned bank account with
Donald. After payment of funeral and burial expenses, the remaining balance in the
account was $860.64. Donald died in January 2012. The County filed a Written
Statement of Claim in Donald’s estate for $165,504.63 and pursuant to Minn. Stat. §§
256B.15 and 519.05. The Minnesota Department of Human Services intervened as a
party. The Estate allowed the claim in the amount of $860.64 based on Barg.
The Estate argued the County is collaterally estopped from relitigating the Medical
Assistance claim under Minn. Stat. § 519.05 because the issue had already been
litigated and decided in Barg and Perrin. The County and DHS argued that the
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