REAL ESTATE AND MEDICAID - YOU CAN'T TAKE IT WITH YOU WITHOUT PAYING FOR IT

Courtesy of Justice Koch, we now have a complete history of probate court appeal since the beginning of time.  Ultimately, the decision is that appeals from Putnam County Probate Court go to the Court of Appeals and not the Circuit Court.  More importantly, the proper procedure for dealing with an appeal to the wrong court is to transfer, not dismiss, the case.

More importantly, this case highlights a peculiarity of Tennessee law.  Real property that passes by devise is not included in the probate estate.  The executor, however, may bring that property into the estate if necessary to satisfy claims of creditors.  Real Property that passes by survivorship or by the entireties is not subject to claim by the executor.  More importantly, it is not subject to claim by TennCare for reimbursement for Medicaid nursing home purposes.  So, if you want to put Mom in a Medicaid nursing home bed and avoid TennCare, have Mom convey the property to you as a joint tenant with right of survivorship.  Of course, Medicare has a “reachback” of 5 years, but it is worth a try.

See In Re Estate of Ardell Hamilton Trigg.