In a case argued by Margolis & Bloom senior associate Sarah Hartline, the Essex Superior Court has overturned a MassHealth denial of coverage for a nursing home resident who MassHealth found had countable assets available from a trust she had created.
The trust in question in Yanow v. Office of Medicaid (Essex Sup. Ct. CA No. 1677CV00599, March 7, 2018), provided for the payment of income earned on trust assets to the grantor, but barred the distribution of any principal to her. Nevertheless, MassHealth argued that due to an administrative provision in the trust which permits the trustee "to determine what part of the trust property is income and what part is principal" the trustee was able to deem all of the trust property "income" and distribute it to the grantor (the applicant for MassHealth benefits).Read More