New Jersey federal court refuses to enjoin state because of likely transfer penalty

46414989 - legal law concept image

New Jersey federal court failed to enjoin the state from denying Medicaid benefits to an applicant who sued the state claiming that she had to show she would likely prevail on the merits.  The applicant had not taken her elective state from her late husband’s estate. Failing to take an elective share will result in the share amount to be determined to be gifted/transferred for less than fair market value, which would incur a penalty period of ineligibility for Medicaid.  Full text of the opinion can be found here.