June 5, 2014
On June 4, 2014, a new Operations Memorandum was published by the Wisconsin Department of Health Services with respect to Estate Recovery in Wisconsin. While it is important to bear in mind that an Operations Memo and the Wisconsin Medical/Medicaid Assistance Handbook are not the law, but rather guidelines for the Wisconsin Department of Health Services, there is some positive news contained in the most recent Estate Recovery Operations Memo.
Life Estate Update and Estate Recovery
If the Operations Memo continues to be followed by the Wisconsin Department of Health Services, even though it is not technically the law, any Life Estates created prior to August 1, 2014 will not be subject to Estate Recovery and will therefore be grandfathered into the new law.
Stop Nursing Homes From Taking Your Assets
With proper advanced planning, you can protect your assets from nursing homes.
In addition, liens will not be placed against Life Estates created prior to August 1, 2014. This is good news for clients and others who have Life Estates in Wisconsin created prior to August 1, 2014.
If you have read prior posts about the Wisconsin Budget Bill by our estate planning attorneys, you will note that whether or not Estate Recovery would be made retroactive against Life Estates has been a concern and something that we have been fighting on for over a year.
Again, we must stress that this is something that we will continue to monitor on an ongoing basis, as the Operations Memo is not law and can change at any time without legislative action.
Joint Tenancy Update and Estate Recovery
In addition, the Operations Memorandum sets forth additional rules for joint tenancy real estate where the joint tenancy was created prior to August 1, 2014 or subsequent to August 1, 2014. This area is more complicated as it depends upon whether the joint tenancy real property is a home or other type of real property. We will monitor this closely and flush out this law as to how it will apply to other joint tenancy assets.
Life Insurance Update and Estate Recovery
The Operations Memo does extend Estate Recovery to life insurance policies created on or after August 1, 2014, regardless of whom the insurance policy designates as beneficiary.
Other Non-Probate Assets
It does not appear that other non-probate assets will receive the favored grandfathering in that the above asset category of Non-Probate assets will receive. However, we will continue to monitor these changes and the laws implementation.
Need More Information?
At Wokwicz Law Offices, we always welcome the opportunity to speak with you about your estate planning needs or questions. We appreciate that this new Wisconsin Budget Bill is proving a challenge to understand. Please call our estate planning attorneys today at (262) 658-2181.