A New Jersey appeals court rules that the state can attach a Medicaid lien to a deceased recipient's elective share of his wife's estate even though the recipient refused to claim the elective share. Matter of Estate of Brown (N.J. Super. Ct., App. Div., No. A-1086-14T4, Jan. 26, 2017).
Arthur Brown transferred his interest in a condominium to his wife, entered a nursing home, and applied for Medicaid benefits, which were granted. Mr. Brown's wife died and Mr. Brown refused to take an elective share in her estate. The state claimed Mr. Brown's waiver of his right to elective share of his wife's estate was a transfer for less than fair market value that subjected him to a penalty period. Mr. Brown appealed, arguing that he was not entitled to claim an elective share, but he died before a final hearing on the appeal.
The state filed a lien against Mr. Brown's estate for reimbursement of Medicaid expenses. The state claimed the lien attached to all assets in the estate, including Mr. Brown's elective share of his wife's estate. Mr. Brown's estate argued that Mr. Brown did not have the right to an elective share because he did not exercise his right during his life. The estate also argued that the elective share statute did not apply because Mr. Brown and his wife were living separately at the time of her death. The trial court ruled in favor of the lien, and the estate appealed.
The New Jersey Superior Court, Appellate Division, affirms, holding that Mr. Brown was entitled to an elective share of his wife's estate. The court rules that although Mr. Brown and his wife were living separately, their relationship "was not sufficiently removed from the normally thought of state of matrimony that would preclude [Mr. Brown] from claiming an elective share of [his wife's] estate." In addition, the court concludes that Mr. Brown's elective share of his wife's estate "was an asset in which he had legal title or interest at the time of his death, and it was an asset that was available to him during his lifetime."
For the full text of this decision, go to: https://www.judiciary.state.nj.us/opinions/a1086-14.pdf
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