Tuesday, September 3, 2013
The new Wisconsin budget has broadened the state's ability to claim dead couples' joint property even if the assets are held in a trust. The language in the budget was drafted to help the state recover Medicaid funds spent on several long-term health care programs. The changes are expected to take effect in a few months.
Medicaid is a partnership between the fed's and the state. Federal law allows states to take Medicaid payouts for long-term care from a deceased recipient's estate. The new language indicates that there is a presumption that marital property owned within the five years before the application for Medicaid is up for grabs after the surviving spouse dies. As a result of the changes, the Wisconsin administration projects that an additional $10.5 million will be collected over the next two years.
See Provisions Allow Wisconsin To Claim Dead Couples' Property, Beloit Daily News, Aug. 19, 2013.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.