Class Action Filed Challenging Maine's Treatment of Contributions to Pooled Trusts

Ron M. Landsman

In a class action lawsuit, Maryland ElderLawAnswers member attorney Ron M. Landsman is challenging Maine's treatment of contributions to pooled special needs trusts in regard to Medicaid eligibility.

Maine treats transfers into these trust by an individual over age 64 as a transfer for less than fair market value and imposes a Medicaid penalty period for anyone who makes a transfer and then applies for Medicaid. Filed as a class action in the U.S. District Court of Maine, the complaint argues that transfers to a pooled special needs trust are actually transfers for fair market value.

Barbara Carlin, conservator of Yvonne Richardson, filed the complaint on behalf of the 87-year-old nursing home resident who was receiving Medicaid benefits. When Ms. Richardson's house was sold, the money was deposited in a pooled special needs trust and the state terminated her Medicaid benefits.  The complaint argues that Ms. Richardson needs the money from the pooled trust to modestly improve her quality of life.

Portland, Maine, attorney Richard L. O'Meara and well-known Medicaid litigator and elder law attorney Rene H. Reixach, Jr. joined Landsman in filing the complaint.

To read the complaint, click here.