Bonta

The difficult question posed by this case is whether the State of California (State) has a claim for reimbursement of Medi-Cal expenses against the beneficiaries of real property conveyed to them by a recipient of health services who had retained a life estate in the property and the right to revoke their interest. The trial court granted the beneficiaries a summary judgment against the State, concluding that the property was not part of the decedent’s estate at the time of her death. We reverse.

Facts

In 1994 Lennie J. Smith executed a grant deed granting a fee simple interest in her house to her daughters, Deborah S. Burke and Linda Osborn, but retained a life estate in the property and the right to revoke the remainder. Four months before Smith died in 1996, the deed was recorded.

From September 1994 through December 23, 1996, the Department of Health Services (Department) paid for health care services and health care premiums for Smith. After Smith died, Diana M. Bonta', the Director of Health Services, filed a complaint to enforce and collect money due on a Medi-Cal creditor’s claim for $45,357.58. The trial court denied the Department’s motion for summary…