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Contact: Mark Mahoney
Associate Director, Media Services & Public Affairs
mmahoney@nysba.org
518-487-5532
April 2, 2012
STATE BAR ASSOCIATION: REPEAL OF EXPANDED ESTATE
RECOVERY, RETENTION OF “SPOUSAL REFUSAL” WILL HELP NEW YORK
FAMILIES
The repeal of an expanded definition of “estate” in
Medicaid recovery cases has improved financial prospects for the
surviving spouses and family members of Medicaid recipients, the
president of the New York State Bar Association said today in response
to passage of the state budget.
“A 2011 change in the definition of estate would have placed
undue financial and legal obstacles on the resolution of an
estate,” said President Vincent E. Doyle III of Buffalo (Connors
& Vilardo). “The decision to repeal it provides greater
financial stability and peace of mind for New York families.”
Although the expanded Medicaid recovery law took effect April 1,
2011, it was never fully implemented. It gave the state expanded powers
to recover assets from the estate of a Medicaid recipient. It also
broadened the definition of “estate” to include “any
other property in which the individual has any legal title or interest
at the time of death,” including jointly held property, retained
life estates and interests in trusts.
Had it not been repealed, the 2011 measure would have caused
confusion over well-established legal rights and triggered lawsuits over
the rightful ownership of the real property and other assets of an
estate.
“This victory came about through no small effort by the Elder
Law, Real Property, and Trusts & Estates sections of the Bar
Association,” Doyle said. “Through their persistence,
dedication and keen analysis, they persuaded policymakers to repeal the
measure.”
In other action, the Legislature again rejected a proposal to
eliminate the “spousal refusal” provision of the state
Medicaid program.
“The removal of this vital protection might have forced elderly
couples to divorce or separate just to maintain their homes and quality
of life,” said Doyle. “We are pleased to see that common
sense and compassion prevailed.”
Governor Cuomo had proposed eliminating the “spousal
refusal” protection as a cost-saving measure, retroactive to April
2011. The proposal would have established eligibility for Medicaid home
care services based on the financial resources of both spouses.
The 77,000-member New York State Bar Association is the largest
voluntary state bar in the nation. It was founded in 1876.
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