Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Wednesday, March 14, 2012

Case Update: Mallery v. Shah -- Woman Fails to Rebut Presumption that Transfers Made to Qualify for Medicaid

Unknown-3Paula Mallery wanted to leave her estate to her friend, Ron Stanton. She asked an estate planning attorney how she could do this without her family interfering. The attorney advised her to add Mr. Stanton as a joint tenant on her bank account and her home.

In 2009, Ms. Mallery fell and went into a nursing home. When she applied for Medicaid, the state discovered she had made uncompensated transfers to Mr. Stanton and she incurred a 19-month penalty period. Ms. Mallery appealed saying that the transfers were for estate planning reasons, not to qualify for Medicaid. The state and the trial court affirmed the penalty period and Ms. Mallery appealed.

In Mallery v. Shah, the New York Supreme Court, Appellate Division, affirmed, holding that Ms. Mallery did not rebut the presumption that the transfers were made to qualify for Medicaid. She did not offer evidence that she did not intend to enter into a nursing home.

See Estate Planning Move to Avoid Probate Earns Medicaid Applicant Penalty Period, ElderLaw Answers, Mar. 5, 2012; see also Mallery v. Shah, N.Y. Sup. Ct., App. Div., 3rd Dept., No. 513277 (Mar. 1, 2012).

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.


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