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689 S.W.3d 274
Tex.
2024
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Background

  • Clyde and Dorothy Burt sold their longtime home and moved to a rental property; seven years later, they entered a skilled-nursing facility.
  • After admission, the Burts used their available assets to purchase a one-half interest in their former home from their daughter and son-in-law, then executed a Lady Bird deed creating a life estate.
  • The Burts’ available resources, after acquiring the property interest, fell below the Medicaid eligibility threshold.
  • The Burts declared their intent to treat this property as their home for Medicaid purposes; they applied for Medicaid while in the nursing facility and never moved back.
  • The Texas Health and Human Services Commission denied Medicaid, concluding the property did not qualify as a "home" under federal law for exclusion from resource calculation.
  • Lower courts reversed and ruled in favor of the Burts’ estate, prompting review by the Texas Supreme Court.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether property purchased post-admission can be excluded as a "home" for Medicaid eligibility Wallace: Intent to return is sufficient; ownership and subjective intent matter, not timing of purchase. Commission: Only a principal residence owned and occupied before claim qualifies as a "home"; post-admission purchases do not. Court agrees with Commission: Only residence owned/occupied before claim can be excluded; post-admission acquisition not excludable.

Key Cases Cited

  • El Paso Hosp. Dist. v. Tex. Health & Hum. Servs. Comm’n, 247 S.W.3d 709 (Medicaid administration and federal-state program parameters)
  • Mills v. Bartlett, 377 S.W.2d 636 (Texas: intent alone does not establish residence)
  • Owens Corning v. Carter, 997 S.W.2d 560 (Intent and presence must coincide to establish residence)
  • Sirius XM Radio, Inc. v. Hegar, 643 S.W.3d 402 (Plain language of statute controls regulatory interpretation)
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Case Details

Case Name: Texas Health and Human Services Commission v. Estate of Clyde L. Burt, Linda S. Wallace, and Linda S. Wallace
Court Name: Texas Supreme Court
Date Published: May 3, 2024
Citations: 689 S.W.3d 274; 22-0437
Docket Number: 22-0437
Court Abbreviation: Tex.
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    Texas Health and Human Services Commission v. Estate of Clyde L. Burt, Linda S. Wallace, and Linda S. Wallace, 689 S.W.3d 274