Tjaden v. State of Illinois, 11 N.E.3d 812

Tjaden purchased a $12,000 life insurance policy in 2009, funded via irrevocable trust to cover funeral expenses within 45 days; after that, funds pass to the residual beneficiary (son).
Tjaden transferred $4,202.79 to her son in 2009; in July 2009 her son gave back $100 to her in a later transaction.
Greer, in 2008, made six $4,500 gifts to his son; his son later returned six checks totaling $12,114 in September 2008.
Greer purchased a $12,000 life insurance policy funded via irrevocable trust; trustees’ terms require evidence of burial expenses within 45 days or funds pass to children.
Departments initially denied Medicaid for both plaintiffs for nonallowable transfers; circuit court reversed in part but the appellate court ultimately reversed and affirmed the Departments, holding no partial gift credit and no exempt burial contracts for the life insurance purchases.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether partial gift returns can be credited for penalty calculations	Tjaden/Greer argued partial returns should reduce penalties.	Departments argued policy did not provide for partial returns credit.	Credit for partial returns not required; penalties upheld.
Whether life insurance purchases funded by irrevocable trusts are exempt without burial contracts	Tjaden/Greer claimed FMV and comparable value made purchases exempt.	No burial contract and FMV not shown; purchases nonexempt.	Life insurance purchases were nonexempt absent burial contracts; penalties affirmed.

Gillmore v. Illinois Department of Human Services, 218 Ill. 2d 302 (2006) (Medicaid look-back and penalty principles in medically needy)
Harris v. Department of Human Services, 345 Ill. App. 3d 764 (2004) (scope of judicial review on administrative decisions)
McDonald v. Department of Human Services, 406 Ill. App. 3d 792 (2010) (standard of review for mixed questions of law and fact)
Zander v. Adams, 399 Ill. App. 3d 290 (2010) (look-back and asset transfer rules for Medicaid)