Estate recovery prohibited in Community Spouse's estate (Idaho 4th Dist.)

From the NAELA bulletin:
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NAELA Member Peter Sisson represented the Estate of George Perry. George and Martha Perry,  were married. Martha had owned land in her own name and, in 2002, quitclaimed it to herself and her husband. After Martha became ill, in 2006, George used a power of attorney to have Martha quitclaim the remaining interest to himself. A few months later, they applied for Medicaid to help Martha. George predeceased Martha in 2009 and the State sought funds from his estate to recover the $108,364.23 it had invested in Martha's care. The magistrate denied the State's claim because Martha had conveyed her interest in the property during her lifetime and she had no interest in the property. The State then appealed. One of the grounds on appeal was that George used a power of attorney that did not include an express power specifically giving him authority to make gifts. Although the statute requires an express power to convey a community property interest, that argument was rejected because the power of attorney pre-dated Idaho's adoption of the Uniform Power of Attorney Act. The State then argued that Idaho law permits recovery of medical assistance from the recipient or the recipient's spouse. The lower court argued that 42 U.S.C. 1396p did not per the State to claw-back assets transferred prior to death. That decision was affirmed on appeal.