Care for the Incompetent
In Re Keri
The New Jersey Supreme Court decided that it is lawful to institute a Medicaid spend-down on behalf of an incompetent individual when certain criteria are met. Medicaid spend-down plans are permissible when the plan does not interrupt or diminish the care that an incompetent person receives, when that plan involves the transfer of that person’s natural objects, when the plan is not contrary to any expressed prior interest or intent, and the plan is clear in providing for the best interest of the incompetent person and satisfies the law’s goal of allowing decisions to be made on an incompetent person’s behalf that the person would make if he or she were able to act.
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The Keri decision speaks most directly to the right of Guardians to engage in Medicaid Planning on behalf of their incompetent wards. In its decisions, however, the New Jersey Supreme Court sent a powerful message to all New Jersey residents who might need long term nursing care. That message supports your right to protect your assets for your heirs, even if that protection accelerates your Medicaid eligibility.
In the past, Medicaid planning has been criticized as wrong. Some have referred to it as self-imposed impoverishment motivated by the desire to qualify for Medicaid benefits intended for the truly needy. The Keri decision effectively rejected that criticism and recognized the legitimacy of Medicaid Estate Planning.