SENATE BILL NO. 1419
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S1419................................................by JUDICIARY AND RULES
HOMESTEAD ALLOWANCE - Adds to and repeals existing law relating to exempt
property and allowances to remove a reference to the family allowance; to
revise the determination and amount of the homestead allowance; to remove
certain circumstances qualifying a surviving spouse for a homestead
allowance; to revise terminology; to provide a homestead allowance for
certain minor and disabled children; to remove certain circumstances
qualifying such minor and disabled children for a homestead allowance; to
provide for an allowance for certain tangible personal property; to remove
provisions dealing with encumbered chattels and deficiencies of exempt
property; to remove a provision for a certain lump sum family allowance; to
remove a provision permitting a personal representative or certain
interested persons to petition the court for a certain family allowance; to
provide for limitations on exempt property and homestead allowance by will;
and to remove provisions dealing with petitioning the court for an exempt
property allowance claim under certain circumstances.
02/11 Senate intro - 1st rdg - to printing
02/12 Rpt prt - to Jud
02/19 Rpt out - rec d/p - to 2nd rdg
02/20 2nd rdg - to 3rd rdg
02/21 3rd rdg - PASSED - 31-0-4
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Cameron,
Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde,
Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai(Sagness), McKenzie, Pearce, Richardson, Schroeder,
Siddoway, Stegner, Werk
NAYS -- None
Absent and excused -- Burkett, McGee, McKague, Stennett
Floor Sponsor - Davis
Title apvd - to House
02/22 House intro - 1st rdg - to Jud
03/06 Rpt out - rec d/p - to 2nd rdg
03/07 2nd rdg - to 3rd rdg
03/12 3rd rdg - PASSED - 68-0-2
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, King, Labrador, Lake,
LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
Ringo, Roberts, Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08),
Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn,
Thomas, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Kren, Ruchti
Floor Sponsor - Wills
Title apvd - to Senate
03/13 To enrol - Rpt enrol - Pres signed
03/14 Sp signed
03/17 To Governor
03/18 Governor signed
Session Law Chapter 182
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature Second Regular Session - 2008
IN THE SENATE
SENATE BILL NO. 1419
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO EXEMPT PROPERTY AND ALLOWANCES; AMENDING SECTION 15-2-401, IDAHO
3 CODE, TO REMOVE A REFERENCE TO THE FAMILY ALLOWANCE; AMENDING SECTION
4 15-2-402, IDAHO CODE, TO REVISE THE DETERMINATION AND AMOUNT OF THE HOME-
5 STEAD ALLOWANCE, TO REMOVE CERTAIN CIRCUMSTANCES QUALIFYING A SURVIVING
6 SPOUSE FOR A HOMESTEAD ALLOWANCE, TO REVISE TERMINOLOGY, TO PROVIDE A
7 HOMESTEAD ALLOWANCE FOR CERTAIN MINOR AND DISABLED CHILDREN AND TO REMOVE
8 CERTAIN CIRCUMSTANCES QUALIFYING SUCH MINOR AND DISABLED CHILDREN FOR A
9 HOMESTEAD ALLOWANCE; AMENDING SECTION 15-2-403, IDAHO CODE, TO REMOVE REF-
10 ERENCES TO THE FAMILY ALLOWANCE, TO PROVIDE FOR AN ALLOWANCE FOR CERTAIN
11 TANGIBLE PERSONAL PROPERTY, TO REMOVE PROVISIONS DEALING WITH ENCUMBERED
12 CHATTELS AND DEFICIENCIES OF EXEMPT PROPERTY, TO REVISE TERMINOLOGY AND TO
13 MAKE TECHNICAL CORRECTIONS; REPEALING SECTION 15-2-404, IDAHO CODE, RELAT-
14 ING TO FAMILY ALLOWANCE; AMENDING SECTION 15-2-405, IDAHO CODE, TO PROVIDE
15 A CODE REFERENCE, TO REMOVE REFERENCES TO THE FAMILY ALLOWANCE, TO REMOVE
16 A PROVISION FOR A CERTAIN LUMP SUM FAMILY ALLOWANCE, TO REVISE TERMINOLOGY
17 AND TO REMOVE A PROVISION PERMITTING A PERSONAL REPRESENTATIVE OR CERTAIN
18 INTERESTED PERSONS TO PETITION THE COURT FOR A CERTAIN FAMILY ALLOWANCE;
19 AMENDING CHAPTER 2, TITLE 15, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
20 15-2-406, IDAHO CODE, TO PROVIDE FOR LIMITATIONS ON EXEMPT PROPERTY AND
21 HOMESTEAD ALLOWANCE BY WILL; AND AMENDING SECTION 56-218, IDAHO CODE, TO
22 REMOVE PROVISIONS DEALING WITH PETITIONING THE COURT FOR AN EXEMPT PROP-
23 ERTY ALLOWANCE CLAIM UNDER CERTAIN CIRCUMSTANCES AND TO MAKE TECHNICAL
24 CORRECTIONS.
25 Be It Enacted by the Legislature of the State of Idaho:
26 SECTION 1. That Section 15-2-401, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 15-2-401. APPLICABLE LAW. This part applies to the estate of a decedent
29 who dies domiciled in this state. Rights to the homestead allowance, and to
30 exempt property, and the family allowance for a decedent who dies not domi-
31 ciled in this state are governed by the law of the decedent's domicile at
32 death.
33 SECTION 2. That Section 15-2-402, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 15-2-402. HOMESTEAD ALLOWANCE. The homestead allowance is exempt from and
36 has priority over all claims against the estate except as hereinafter set
37 forth. The homestead allowance is in addition to any share passing to the sur-
38 viving spouse or minor or dependent disabled child by the will of the decedent
39 unless otherwise provided in the will, or by intestate succession, or by way
40 of elective share. The amount of the homestead allowance shall be the sum set
41 forth in the provisions of section 55-1003, Idaho Code, as those provisions
2
1 are in effect on the date of the decedent's death fifty thousand dollars
2 ($50,000). The homestead allowance is not a right to claim ownership of, or
3 succession to, any homestead owned by the decedent at the time of the
4 decedent's death but is only the right to claim the sum set forth above. The
5 right to a homestead allowance is determined as follows:
6 (a) If there is a surviving spouse of the decedent, and the surviving
7 spouse does not, at the time of the death of the decedent, have a homestead,
8 which for purposes of this chapter shall have the same definition as set forth
9 in section 63-701(2), Idaho Code, the surviving spouse shall be entitled to a
10 homestead allowance. unless the surviving spouse receives (by will or other
11 dispositive instrument, by intestate succession, by survivorship, or by other
12 means) such a homestead either from the decedent or due to the death of the
13 decedent;
14 (b) If there is no surviving spouse, and there are one (1) or more minor
15 and/or dependent children of the decedent under the age of twenty-one (21)
16 years whom the decedent was obligated to support or children who were in fact
17 being supported by the decedent and who are disabled, as provided in 42 U.S.C.
18 section 1382c, then each such minor or disabled child and each dependent child
19 of the decedent is entitled to a portion of the homestead allowance in the
20 amount of the homestead allowance divided by the number of such minor and
21 dependent or disabled children of the decedent entitled to receive the home-
22 stead allowance, unless the minor child or dependent child receives (by will
23 or other dispositive instrument, by intestate succession, by survivorship, or
24 by other means) such a homestead either from the decedent or due to the death
25 of the decedent.
26 SECTION 3. That Section 15-2-403, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 15-2-403. EXEMPT PROPERTY. In addition to any homestead allowance, the
29 decedent's surviving spouse is entitled from the estate to value, not exceed-
30 ing ten thousand dollars ($10,000) in excess of any security interests
31 therein, in tangible personal property including, but not limited to, house-
32 hold furniture, automobiles, furnishings, appliances, family heirlooms and
33 personal effects, subject to the terms of section 15-2-406, Idaho Code. If
34 there is no surviving spouse, the decedent's children are entitled jointly to
35 the same value unless the decedent's will provides otherwise. If encumbered
36 chattels are selected and if the value in excess of security interests, plus
37 that of other exempt property, is less than ten thousand dollars ($10,000), or
38 if there is not ten thousand dollars ($10,000) worth of exempt property in the
39 estate, the spouse or children are entitled to other assets of the estate, if
40 any, to the extent necessary to make up the ten thousand dollar ($10,000)
41 value tangible personal property, subject to the terms of section 15-2-406,
42 Idaho Code. Rights to exempt property and assets needed to make up a defi-
43 ciency of exempt property have priority over all claims against the estate,
44 except that the right to any assets to make up a deficiency of exempt property
45 shall abate as necessary to permit prior payment of homestead allowance and
46 family allowance, and except as otherwise provided. These rights are in addi-
47 tion to any benefit or share passing to the surviving spouse or children by
48 the will of the decedent, (unless otherwise provided in the will), or by
49 intestate succession, or by way of elective share.
50 SECTION 4. That Section 15-2-404, Idaho Code, be, and the same is hereby
51 repealed.
3
1 SECTION 5. That Section 15-2-405, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 15-2-405. SOURCE -- DETERMINATION -- DOCUMENTATION -- MISCELLANEOUS PRO-
4 VISIONS. If the estate is otherwise sufficient, property specifically devised,
5 including the provisions pursuant to section 15-2-513, Idaho Code, may not be
6 used to satisfy rights to the homestead allowance, family allowance or, exempt
7 property. Subject to this restriction, the surviving spouse, the guardians of
8 the minor children, or children who are adults may select property of the
9 estate as homestead allowance, family allowance, or exempt property. The per-
10 sonal representative may make these selections if the surviving spouse, the
11 children or the guardians of the minor children are unable or fail to do so
12 within a reasonable time or if there is no guardian of a minor child. The per-
13 sonal representative may execute an instrument to establish the homestead
14 allowance, family allowance, or exempt property. The personal representative
15 may determine the family allowance in a lump sum not exceeding eighteen thou-
16 sand dollars ($18,000) or periodic installments not exceeding one thousand
17 five hundred dollars ($1,500) per month for one (1) year, and may disburse
18 funds of the estate in payment of the family allowance and any part of the
19 homestead allowance payable in cash. The personal representative or any inter-
20 ested person aggrieved by any selection, determination, payment, proposed pay-
21 ment, or failure to act under this section may petition the court for appro-
22 priate relief, which may include a family allowance other than that which the
23 personal representative determined or could have determined. Despite any lan-
24 guage to the contrary in this chapter, the homestead allowance, family allow-
25 ance, and exempt property are not mandatory or automatic, allowances, but
26 rather must be applied for by the surviving spouse and/or children, as appro-
27 priate, as set forth in this title. Even though these allowances and the right
28 to apply for exempt property are not claims against estates, the manner of and
29 time period for applying for these allowances or the exempt property shall be
30 the same as set forth in sections 15-3-801, 15-3-803 and 15-3-804, Idaho Code;
31 provided however, that the personal representative shall not be required to
32 give actual notice to a surviving spouse or a minor or dependent disabled
33 child of the right to apply for these homestead allowances or the exempt prop-
34 erty, and provided further that any notice actually given by the personal rep-
35 resentative does not need to make any additional or special reference to an
36 application by the surviving spouse or dependent or minor or disabled or adult
37 children also being barred if not submitted within the time period set forth
38 in the notice. Also, the personal representative shall not be liable to the
39 surviving spouse, minor or dependent disabled or adult child, any creditor, or
40 any other successor to the estate in the same manner as provided in section
41 15-3-801(c), Idaho Code, as a result of giving or failing to give notice. The
42 homestead allowance, family allowance, and exempt property may not be enforced
43 or applied for on behalf of a surviving spouse or a minor or dependent or
44 adult child of the decedent by a creditor of the surviving spouse or a minor
45 or dependent disabled or adult child of the decedent, or by any person or
46 entity claiming by, through, or because of the surviving spouse or minor or
47 dependent disabled or adult child of the decedent. Despite any language to the
48 contrary in other sections of this chapter, the homestead allowance, family
49 allowance, and exempt property do not take precedence over reasonable adminis-
50 trative costs and expenses of the estate of the decedent.
51 SECTION 6. That Chapter 2, Title 15, Idaho Code, be, and the same is
52 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
53 ignated as Section 15-2-406, Idaho Code, and to read as follows:
4
1 15-2-406. LIMITATIONS ON EXEMPT PROPERTY AND HOMESTEAD ALLOWANCE BY WILL.
2 The decedent may provide by will that a surviving spouse, and/or adult chil-
3 dren, but not minor or disabled children:
4 (1) Are not entitled to any exempt property or homestead allowance; or
5 (2) Are entitled to limited exempt property or a limited homestead allow-
6 ance, as provided in the will; but
7 (3) May not condition such elimination or limitation upon whether the
8 estate of the decedent is subject to a claim for estate recovery for medicaid
9 benefits paid to the decedent or to a spouse of the decedent.
10 SECTION 7. That Section 56-218, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 56-218. RECOVERY OF CERTAIN MEDICAL ASSISTANCE. (1) Except where exempted
13 or waived in accordance with federal law medical assistance pursuant to this
14 chapter paid on behalf of an individual who was fifty-five (55) years of age
15 or older when the individual received such assistance may be recovered from
16 the individual's estate, and the estate of the spouse, if any, for such aid
17 paid to either or both:
18 (a) There shall be no adjustment or recovery until after the death of
19 both the individual and the spouse, if any, and only at a time when the
20 individual has no surviving child who is under twenty-one (21) years of
21 age or is blind or permanently and totally disabled as defined in 42
22 U.S.C. 1382c.
23 (b) While one (1) spouse survives, except where joint probate will be
24 authorized pursuant to section 15-3-111, Idaho Code, a claim for recovery
25 under this section may be established in the estate of the deceased
26 spouse.
27 (c) The claim against the estate of the first deceased spouse must be
28 made within the time provided by section 15-3-801(b), Idaho Code, if the
29 estate is administered and actual notice is given to the director as
30 required by subsection (5) of this section. However, if there is no admin-
31 istration of the estate of the first deceased spouse, or if no actual
32 notice is given to the director as required by subsection (5) of this sec-
33 tion, no claim shall be required until the time provided for creditor
34 claims in the estate of the survivor.
35 (d) Nothing in this section authorizes the recovery of the amount of any
36 aid from the estate or surviving spouse of a recipient to the extent that
37 the need for aid resulted from a crime committed against the recipient.
38 (2) Transfers of real or personal property, on or after the look-back
39 dates defined in 42 U.S.C. 1396p, by recipients of such aid, or their spouses,
40 without adequate consideration are voidable and may be set aside by an action
41 in the district court.
42 (3) Except where there is a surviving spouse, or a surviving child who is
43 under twenty-one (21) years of age or is blind or permanently and totally dis-
44 abled as defined in 42 U.S.C. 1382c, the amount of any medical assistance paid
45 under this chapter on behalf of an individual who was fifty-five (55) years of
46 age or older when the individual received such assistance is a claim against
47 the estate in any guardianship or conservatorship proceedings and may be paid
48 from the estate.
49 (4) For purposes of this section, the term "estate" shall include:
50 (a) All real and personal property and other assets included within the
51 individual's estate, as defined for purposes of state probate law; and
52 (b) Any other real and personal property and other assets in which the
53 individual had any legal title or interest at the time of death, (to the
5
1 extent of such interest), including such assets conveyed to a survivor,
2 heir, or assign of the deceased individual through joint tenancy, tenancy
3 in common, survivorship, life estate, living trust or other arrangement.
4 (5) Claims made pursuant to this section shall be classified and paid as
5 a debt with preference as defined in section 15-3-805(5), Idaho Code. Any dis-
6 tribution or transfer of the estate prior to satisfying such claim is voidable
7 and may be set aside by an action in the district court. The personal repre-
8 sentative of every estate subject to a claim under this section must, within
9 thirty (30) days of the appointment, give notice in writing to the director of
10 his or her appointment to administer the estate. However, if an exempt prop-
11 erty allowance claim is made in an estate subject to a claim under this sec-
12 tion by one (1) or more persons not described in subsection (2) of this sec-
13 tion, then, to the extent such exempt property allowance claim exceeds the
14 fair market value of the actual personal property of the decedent held by the
15 estate subject to a claim under this section (including, but not limited to,
16 such items as household furniture, automobiles, furnishings, appliances, and
17 personal effects), the persons making such exempt property allowance claim
18 must file with the court, and with the personal representative or administra-
19 tor of the estate, and with the department, a written statement under oath
20 containing the following:
21 (a) A statement that no personal property of the decedent has been trans-
22 ferred without adequate consideration to any person or entity, including
23 any one (1) or more of the persons making the exempt property allowance
24 claim, to the actual knowledge of any of the persons making the exempt
25 property allowance claim, within a time period commencing one (1) year
26 prior to the death of the decedent and ending on the date of the state-
27 ment; or
28 (b) A statement that personal property of the decedent has been trans-
29 ferred without adequate consideration to any person or entity, including
30 one (1) or more of the persons making the exempt property allowance claim,
31 within a time period commencing one (1) year prior to the death of the
32 decedent and ending on the date of the statement, to the actual knowledge
33 of any of the persons making the exempt property allowance claim, and
34 stating the fair market value of the personal property so transferred, and
35 stating a reasonable description of such property, and stating the method
36 of determining the fair market value of the personal property so trans-
37 ferred.
38 If the written statement indicates that there has been such a transfer of per-
39 sonal property, then the fair market value of the personal property so trans-
40 ferred shall be subtracted from the remaining exempt property allowance claim,
41 after subtraction of the personal property held by the estate, as described
42 above, and only any still remaining portion of the exempt property claim may
43 be paid by the estate to the persons making the exempt property allowance
44 claim. The statement submitted under paragraph (a) or (b) of this subsection,
45 must be signed under oath by all persons making the exempt property claim.
46 (6) The department may file a notice of lien against the property of any
47 estate subject to a claim under this section.
48 (a) In order to perfect a lien against real or personal property, the
49 department shall, within ninety (90) days after the personal representa-
50 tive or successor makes a written request for prompt action to the direc-
51 tor, or three (3) years from the death of the decedent, whichever is
52 sooner, file a notice of lien in the same general form and manner as pro-
53 vided in section 56-218A(3)(a), Idaho Code, in the office of the secretary
54 of state, pursuant to section 45-1904, Idaho Code. Failure to file a
55 notice of lien does not affect the validity of claims made pursuant to
6
1 this section.
2 (b) The department may release the lien in whole or in part to permit the
3 estate property to be administered by a court-appointed personal represen-
4 tative.
5 (c) The department may foreclose its lien, without probate, in any of the
6 following circumstances:
7 (i) Where no personal representative has been appointed after one
8 (1) year from the date of death of the survivor of both the individ-
9 ual and spouse, if any;
10 (ii) Where the property has been abandoned by the decedent's heirs
11 or successors, if any;
12 (iii) Where the real property taxes that are due and payable have
13 remained unpaid for two (2) years and, after demand by the depart-
14 ment, the heirs or successors, if any, have failed to seek appoint-
15 ment or pay the property taxes; or
16 (iv) Where all parties interested in the estate consent to foreclo-
17 sure of the lien.
18 (7) The director shall promulgate rules reasonably necessary to implement
19 this section including, but not limited to, rules establishing undue hardship
20 waivers for the following circumstances:
21 (a) The estate subject to recovery is income-producing property that pro-
22 vides the primary source of support for other family members; or
23 (b) The estate has a value below an amount specified in the rules; or
24 (c) Recovery by the department will cause the heirs of the deceased indi-
25 vidual to be eligible for public assistance.
26 (8) The cause of action to void a transfer without adequate consideration
27 established in this section shall not be deemed to have accrued until the
28 department discovers, or reasonably could have discovered, the facts consti-
29 tuting the transfer without adequate consideration.
STATEMENT OF PURPOSE
RS 17887
The allowances in the Idaho Probate Code for surviving spouses
and children (especially adult children) have caused endless
problems in interpretation and implementation. Additionally,
such allowances have created problems because of the Deficit
Reduction Act changes to Medicaid and also interpretations of
existing rules and statutes by Idaho Medicaid estate recovery.
One of the major problems caused by the allowances is in the
situation of blended families, where the husband and wife each
have family from prior marriages, often separate property, and
wish to leave their separate property, and perhaps their share of
community property, to their own children, believing that leaving
the property to their current spouse will result in all the
property passing to the children of the surviving spouse at his
or her death, thereby eliminating any inheritance to the children
of the first-to-die spouse. Many cases have arisen where the
surviving spouse is able to warp the estate plan of the first-to-
die spouse by taking the probate allowances (currently up to not
less than $128,000) despite the provisions of the Will of the
deceased spouse. The apparent actual original intent of the
allowances, to protect indigent spouses and minor or dependent
children, was seldom met by the allowances, and often the
surviving spouse took the allowances and left the minor or
dependent children of the deceased spouse indigent.
This bill, done in consultation with Medicaid Estate Recovery as
to Medicaid issues, restructures the allowances to meet their
original intent.
(1) The existing family allowance is deleted, since it was
based on probate being a process that locked up all assets,
therefore requiring a temporary monthly or lump sum payment
to the spouse or minor or disabled children to sustain them
during the probate. This is simply no longer applicable.
(2) The current homestead allowance, which either is $100,00
or nothing, is coupled to Idaho Code 55-1003 and represents
the amount exempt from bankruptcy or seizure by unsecured
creditors in a homestead. However, the allowance as
currently constituted did not serve that purpose. The
probate homestead allowance was not given if the spouse
already owned a homestead as defined by property tax law, or
received one because of the death of the deceased spouse. A
one-half ownership in a residence is deemed to be a
homestead. As an example, if a husband and wife owned their
residence with an equity of $100,000, current Idaho law
(Title 55, Chapter 10) would protect all that equity.
However, if one spouse died, leaving the house to the
surviving spouse, the one-half ownership of the deceased
spouse would no longer be protected, but would be subject to
the estate debts, even though the surviving spouse is
entitled to a full $100,000 homestead. This aberration in
the law is corrected by this bill, which sets a straight
forward $50,000 homestead amount, not dependent on whether
the surviving spouse (or minor or disabled children) owned a
homestead. This will have the net effect of protecting the
one-half of the homestead in the estate. It also removes
the complicated language from the existing law on when the
allowance would or would not be payable.
(3) The bill also allows the decedent to limit or eliminate
the ability of a surviving spouse or (as to the exempt
property, adult children), but not minor or dependent
children, to claim the allowance. Existing law has already
given that ability to eliminate the exempt property claim as
to adult children and this bill expands that to the
surviving spouse as well. This removes the ability of a
surviving spouse to override the estate plan of the deceased
spouse, while still allowing the allowances if the deceased
spouse so wishes. This bill will not have any current fiscal
effect on Medicaid estate recovery, since Idaho Medicaid
estate recovery currently claims the right to make a
contingent claim in the estate of the community spouse, if
the institutionalized spouse is still alive and receiving
Medicaid benefits. This claim is independent of the
allowances. However, this bill does remove the problem of
whether the failure of an institutionalized spouse to take
allowances will be a transfer which disqualifies the
institutionalized spouse from receiving Medicaid for the
penalty period, currently approximately 25 months, based on
the allowance amounts and the current Idaho Divestment
Penalty Divisor.
(4) The bill also greatly simplifies the exempt property
allowance by limiting it to only tangible personal property
of certain types and eliminating any cash equivalent. This
solves a number of Medicaid estate recovery problems, and
allows the much more complex provisions in Section 56-218
(Section Seven of this bill), which were implemented several
sessions ago in an attempt to solve those problems, to be
eliminated. This will greatly clarify and simplify the
interaction between Medicaid estate recovery and the exempt
property provisions.
This bill greatly simplifies and clarifies the probate allowances
and their application. It also gives freedom of choice to
decedents on how their estates will pass. Finally, it eliminates
several problems in the Medicaid area, without having any current
fiscal impact on Medicaid.
FISCAL NOTE
This bill will have no fiscal impact.
CONTACT:
Name: Robert L. Aldridge, Trust & Estate Professionals of
Idaho, Inc.
Telephone: office: (208) 336-9880 Cell: (208) 631-2481
STATEMENT OF PURPOSE/FISCAL NOTE S 1419