Michigan Supreme Court Expands Probate Court Authority In Medicaid Planning Cases
MSC Opinion Released: March 18, 2026 (Cavanaugh, C.J., for the Court)
Docket No. 166921
Saginaw County Probate Court
Holding: The Court unanimously overruled In re Estate of Schroeder, 335 Mich App 107 (2020), which had held that probate courts cannot consider Medicaid-related circumstances until after a formal eligibility determination is made.
Facts: Janet and Jerome Sizick were married over 60 years. When Jerome's health declined in 2021 and he moved into a nursing home, Janet petitioned the Saginaw Probate Court for a protective order under MCL 700.5401(3) — seeking transfer of Jerome's assets and monthly support of $2,318 — before his Medicaid application had been decided. The probate court granted the order. The Michigan Department of Health and Human Services (DHHS) repeatedly appealed, leading to a long appellate history before reaching the Michigan Supreme Court.
At issue was whether a probate court may consider the potential availability of Medicaid benefits when analyzing the needs of a protected individual and his dependents under MCL 700.5401(3)(b), even before DHHS has made a formal Medicaid eligibility determination. The Court held that MCL 700.5401(3)(b) requires a probate court to assess the foreseeable support needs of both the protected individual and his dependents — an inherently forward-looking inquiry. Nothing in the statute limits the court to circumstances as they exist at the exact moment of the hearing. Medicaid eligibility is therefore a proper consideration, even if DHHS has not yet acted.
Key Appellate Rulings:
Although Jerome died during the appeal, the Court held the case remained live because reinstating the protective order would have a practical legal effect. Jerome's two denied Medicaid applications were pending before MOAHR (the state administrative hearing body), held in abeyance awaiting this ruling. Michigan Medicaid policy permits retroactive reimbursement to deceased applicants whose denials are overturned on appeal, meaning Jerome's estate could still recover benefits to offset a $125,000+ nursing home debt
Reaffirming In re Vansach Estate, 324 Mich App 371 (2018), the Court emphasized that the statute does not let courts simply prioritize a community spouse's needs over those of the institutionalized spouse. A protective order cannot impoverish the institutionalized spouse or be used as an "end-run around Medicaid." Here, Jerome was left approximately $682/month after the support award — sufficient to cover his patient-pay obligations under Medicaid — so the order was consistent with Vansach.
The Court unanimously overruled In re Estate of Schroeder, 335 Mich App 107 (2020), which had held that probate courts cannot consider Medicaid-related circumstances until after a formal eligibility determination is made. The Supreme Court found this rule had no basis in the statute's text and was internally inconsistent — Schroeder itself acknowledged that patient-pay amounts can be estimated before an application is even filed, yet still required an actual determination before a court could act on that information.
The Court found the probate court's needs analysis on remand was thorough and well-supported. The Court of Appeals' concern about "outdated" asset valuations (some a few years old) was dismissed as harmless error — there was no indication that fresh appraisals would have changed the outcome, and the order directed transfer of 100% of Jerome's assets regardless. Accordingly, the Court of Appeals' ruling was reversed and the case was remanded to the probate court for further proceedings.
