Justice Hunter
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THE COURT-appointed guardian of the incapacitated person (IP) previously moved for leave to expand his powers to gift a percentage of available assets, in accordance with the IP’s testamentary intentions, and to make a loan of a percentage of the available assets to the guardian, to initiate Medicaid planning. The motion was granted to the extent the guardian was directed to set up a trust for the IP’s benefit. The guardian’s counsel, Danetti, sought to reargue the court’s prior decision, arguing a trust for the IP’s benefit would likely be determined an “illusory trust” by the Department of Human Resources. She noted such funds would likely be considered available for the IP and prevent the IP from being approved for Medicaid. Danetti suggested an Irrevocable Asset Protection Trust, arguing the gift and loan of the IP’s assets was the most appropriate plan, and alleged the “best interest” test was not the correct test to use when analyzing a Medicaid planning application. Upon reconsideration, the court granted the guardian’s initial application to conduct Medicaid planning in the form of a gift and loan. It permitted the guardian to gift a portion of the IP’s assets to the IP’s niece and to make a loan to himself in the form of a promissory note.
