In Re Estate of Gullberg

652 N.W.2d 709, 2002 Minn. App. LEXIS 1226, 2002 WL 31416548
CourtCourt of Appeals of Minnesota
DecidedOctober 29, 2002
DocketCO-02-668
StatusPublished
Cited by14 cases

This text of 652 N.W.2d 709 (In Re Estate of Gullberg) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Estate of Gullberg, 652 N.W.2d 709, 2002 Minn. App. LEXIS 1226, 2002 WL 31416548 (Mich. Ct. App. 2002).

Opinions

OPINION

KLAPHAKE, Judge.

Intervenor appellant Minnesota Department of Human Services (the state) and appellant Dakota County (the county) challenge a district court decision denying the county’s claim against respondent, the Estate of Jean Gullberg, for reimbursement of medical assistance benefits paid on behalf of Jean Gullberg’s husband, Walter Gullberg, who predeceased her. The district court denied the county’s petition for allowance of the claim, holding that Minnesota’s estate recovery statute, Minn.Stat. § 256B.15, subd. 2 (2000), is preempted by 42 U.S.C. § 1396p(b)(4)(B) (2000).

On appeal, this court has granted the state’s motion to intervene and the county’s subsequent motion to join in the state’s brief. Because Minnesota’s estate recovery statute is preempted only to the extent that it conflicts with federal law, we reverse and remand to determine the nature and extent of Walter Gullberg’s interest in the homestead at the time of his death.

FACTS

Walter and Jean Gullberg were married when they purchased their homestead property in 1983. The warranty deed listed them as joint tenants. On October 30, 1992, Walter Gullberg conveyed his interest in the homestead by quit claim deed to Jean Gullberg, who was still his wife. Less than one month later, Walter Gull-berg applied for medical assistance. On the application for medical assistance, the homestead was valued at between $57,300 and $59,000. Between December 1, 1992 and his death on February 13, 1994, at the age of 70, Walter Gullberg received $40,081.31 in medical assistance benefits.

Jean Gullberg died more than six years later, on September 11, 2000, having never received medical assistance benefits. The only asset listed in her estate inventory was the homestead, which was valued at $119,900.

On March 15, 2001, the county filed a claim in the amount of $40,081.31 against the estate under Minnesota’s estate recovery statute, Minn.Stat. § 256B.15, subd. 2 (2000). The Gullbergs’ daughter, who had been appointed personal representative of the estate, disallowed the claim. The county thereafter filed a petition with the district court seeking allowance of the claim. On May 31, 2001, while the county’s petition was pending, the personal representative sold the homestead and placed the proceeds in the estate account.

[712]*712In denying the county’s claim against the estate, the district court concluded:

The State may not seek reimbursement of Medical Assistance benefits from the assets of the estate of the surviving spouse of a Medical Assistance recipient where those assets were conveyed to the recipient’s surviving spouse prior to the recipient’s death.

The court reasoned that because federal law limits the definition of “estate” to property and assets in which the recipient had legal title at the time of death, federal law preempts Minnesota’s estate recovery statute, which defines “estate” to include any property that was jointly owned at any time during the marriage.

ISSUE

Did the district court err in concluding that Minnesota’s estate recovery statute is preempted by federal law, thus disallowing the county’s claim in its entirety?

ANALYSIS

The issue of “[w]hether federal law preempts state law is generally an issue of statutory construction,” which is reviewed de novo. Martin ex rel. Hoff v. City of Rochester, 642 N.W.2d 1, 9 (Minn.2002) (citing Pikop v. Burlington N.R.R. Co., 390 N.W.2d 743, 748 (Minn.1986)). To the extent that the preemption doctrine finds its roots in the supremacy clause, it implicates constitutional concerns, burdens, and standards. See U.S. Const, art. VI; Martin, 642 N.W.2d at 17 (finding of preemption implicates obligation to interpret statute to avoid constitutional defects).

Federal law will preempt state law in three distinct situations: explicit preemption, implicit preemption, or conflict preemption. Martin, 642 N.W.2d at 10-11. Because Congress “specifically permits state action regarding Medicaid” and “requires that a participating state’s Medicaid plan conform to federal requirements,” this case does not involve explicit or implicit preemption. See id. at 11 (“there is no explicit or implicit federal preemption of the [Medicaid] field”). Rather, this case presents a “conflict preemption” situation, in which preemption will arise only “when state law conflicts with federal law, either because compliance with both federal and state law is impossible or because the state law is an obstacle to the accomplishment of the purposes of the federal scheme.” Id. (citations omitted).

Since 1993, federal law has required states to recover the costs of certain medical assistance provided to individuals over the age of 55 from the “individual’s estate,” but only after the “death of the individual’s surviving spouse.” 42 U.S.C. § 1396p(b) (2000). Federal law defines the term “estate” to include all assets within the individual’s estate under state probate law. 42 U.S.C. § 1396p(b)(4)(A) (2000). At the “option” of a state, an individual’s “estate” may also include

any other real and personal property and any other assets in which the individual had any legal title or interest at the time of death (to the extent of such interest), including such assets conveyed to a survivor, heir, or assign of the deceased individual through joint tenancy, tenancy in common, survivorship, life estate, living trust, or other arrangement.

42 U.S.C. § 1396p(b)(4)(B) (2000). Thus, under federal law, a state may choose to enact legislation that allows recovery of claims against a surviving spouse’s estate if the estate contains property or assets in which the Medicaid recipient had some legal title or interest at the time of his or her death. See, e.g., In re Estate of Jobe, [713]*713590 N.W.2d 162, 165-66 (Minn.App.1999), review denied (Minn. May 26, 1999); In re Estate of Wirtz, 607 N.W.2d 882, 886 (N.D.2000).

In Minnesota, the estate recovery statute allows claims against the estate of a surviving spouse but limits those claims “to the value of the assets of the estate that were marital property or jointly owned property at any time during the marriage.” Minn.Stat. § 256B.15, subd. 2 (2000). In Jobe, 590 N.W.2d at 165-66, this court allowed a claim against a surviving spouse’s estate where the only asset in that estate consisted of the homestead, which was held by the couple in joint tenancy and became the property of the surviving spouse on the death of the recipient. In so doing, we concluded that there was no preemption because compliance with federal and state law was possible. Id. at 166.

This case presents a slightly different situation. Here, the recipient spouse conveyed the homestead, which was marital property and held in joint tenancy, to the surviving spouse shortly before he applied for and began to receive medical assistance benefits.

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In Re Estate of Gullberg
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Bluebook (online)
652 N.W.2d 709, 2002 Minn. App. LEXIS 1226, 2002 WL 31416548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-gullberg-minnctapp-2002.