Nursing Homes and Predatory Litigation/Your Home Isn't Safe!
Attorney
(866) 735-1102 Ext 540
CAUTION: TRUE STORY AHEAD! In 2003, a mother and father in Stoughton conveyed their modest home to their two sons and retained a "life estate" (a right to live in the home until their deaths). The father, then in his mid sixties, had diabetes, but was otherwise healthy and engaged in his usual daily activities. He was a retired machinist from Portugal that had worked hard his entire life. The family was a bit behind on their taxes, but otherwise had no debts. When the home was transferred, one son moved into the house and became responsible for it's care and upkeep and also paid the mortgage.
Three years later, in 2006, the father had an acute diabetic episode and had half of one leg amputated. He had to enter a nursing home.
At the time of admission, an Admission Agreement was signed which made the father responsible for his nursing home bills and made his son "responsible" for using the FATHERS assets to pay those bills. However, the sons assets did not have be used to pay those bills, nor, the Agreement said, could the son be held responsible for those bills. Remember, by that time, the son had owned the home for almost three years. Ultimately, some bills were paid by Medicare and there ended up being a dispute as to whether or not MassHealth would cover some of the fathers bills. As a result, there ended up being a disputed bill in excess of 100k before the nursing home booted the (one legged) father out of the facility.
Guess what? In 2007, the nursing home sued the mother, father and both sons, alleging that the 2003 transfer of the home was a "fraudulent conveyance" which should be reversed so that the house could then be attached by the nursing home and the sale proceeds used to pay the bill. I represented that family and defended by arguing that the transfer was a perfectly legitimate transfer when made and that there was no expectation, at that time, that the father would require nursing home care three years later.
We completed the trial of the matter this week in Dedham, Ma. After the close of evidence, the trial judged dismissed some of the nursing homes case, but has not yet ruled on the "fraudulent conveyance" claims of the nursing home.
This case, and cases like it, should be a great cause for concern. This transfer was similar to thousands of such transfers that occur every day between family members as legitimate "estate planning" measures. Now; not only do families have to contend with the Medicare "look back" period, but also have to be afraid of whether or not a nursing home will prey upon them and allege that what they did was a "fraud." Defending such an action also results in the family incurring thousands of dollars in unanticipated legal fees. Even though I reduced my fees for this family, the defense and trial have been time consuming and the costs have been substantial.
I will report on the results when received. However, this case illustrates how, more than ever, planning for the future by families should occur well before a problem arises or health care concerns exist. By then; it may be too late.