The new Jersey Supreme Court, in August of 2004, decided the case of In the Matter of Mildred Keri, a mentally incompetent person. In this case, the New Jersey Supreme Court has emphatically stated that Medicaid planning is legal and that a child serving as the guardian for his mentally incapacitated parent could gift the parent’s assets to himself, a sibling, (or arguably any person or entity), in order to hasten the individual’s eligibility for Medicaid. Prior to this decision it has always been assumed that Medicaid planning, after in competency of an individual had been declared, was not possible. Now, with this decision, the New Jersey Supreme Court allows further estate and Medicaid planning for individuals who did not accomplish that goal prior to being declared incompetent.
Albert J. Rescinio, Esq. has a published decision from the NJ Appellate Division on behalf of his client in defending the client and saving their assets from forfeiture to the Division of Social Services.
Please contact our office if you have Medicaid or estate planning issues or questions.