923 N.W.2d 475
N.D.2019Background
- Lorraine and Frederick Krueger acquired their Northwood home as joint tenants in 1975.
- Lorraine received Medicaid from 2000 until her death in 2014; Frederick died in 2017.
- The estate realized $75,391.50 net from sale of the home after Frederick’s death.
- The North Dakota Department of Human Services filed a claim against Frederick’s estate to recover $278,182.13 in Medicaid benefits paid to Lorraine, seeking 100% of the sale proceeds.
- The district court allowed recovery of 100% of the net sale proceeds; the personal representative (Braaten) appealed.
- The central legal question: whether federal/state Medicaid recovery statutes permit recovery of 100% of joint tenancy sale proceeds or only the deceased recipient’s fractional share.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether DHS may recover 100% of net sale proceeds of property held in joint tenancy where deceased spouse was Medicaid recipient | Braaten: recovery should be limited to recipient’s fractional interest (50%) | DHS: joint tenancy gives recipient an undivided interest in the whole, so recovery may reach 100% | The court held recovery is limited to the deceased recipient’s fractional interest (50%) |
Key Cases Cited
- In re Estate of Wirtz, 2000 ND 59, 607 N.W.2d 882 (discussing federal limits on state Medicaid recovery)
- In re Estate of Bergman, 2004 ND 196, 688 N.W.2d 187 (tracing only assets in which deceased recipient held an interest)
- Jamestown Terminal Elevator, Inc. v. Knopp, 246 N.W.2d 612 (N.D. 1976) (Blackstone on joint tenancy: each joint tenant has an undivided interest in the whole)
- In re Estate of Serovy, 711 N.W.2d 290 (Iowa 2006) (interpreting “at the time of death” as immediately before death for recovery of jointly held property)
- In re Estate of Gullberg, 652 N.W.2d 709 (Minn.Ct.App. 2002) (same timing interpretation for joint tenancy recovery)