In a somewhat surprising move, as part of the passage of the Uniform Trust Code, the State repealed some of the harshest Medicaid provisions, some of which were clearly in conflict with Federal Law. That’s the good news.
There is still considerable uncertainty, however, particularly as it relates to “grandfathering” for transactions that occurred prior to Wisconsin’s new Medicaid Laws. For example, many people did life estates, going back many years, often with no thinking about Medicaid, but purely to avoid probate and simplify their estates. Will those transactions be grandfathered? We don’t know.
Likewise, will other transactions previously done be grandfathered? We don’t know, and we await the Department of Health Services issuing rules interpreting or implementing the new Law. The Bill adopting the Uniform Trust Code also repealed the provisions that prevented transferring excluded assets. This will be an important planning option for owners of farms and small businesses. That provision was clearly in conflict with Federal Law.
Finally, the State had attempted to prevent the use of promissory notes by heirs; that portion, also in conflict with Federal Law, was also repealed. There still remains a great deal of uncertainty about the application, interpretation, and effective date of Wisconsin’s new Laws. If you have questions about how the new Laws may affect your particular situation, please contact our office for an appointment.