Malpractice Case May Proceed Against New York Attorney Who Charged More Than $44,000 For Medicaid Planning To Protect Net Estate Worth $130,000

A New York appeals court allowed a case for legal malpractice and breach of fiduciary duty to proceed against an attorney who charged more than $44,000 for Medicaid planning work to protect a net estate valued at about $130,000. Sobel v. Ansanelli, (N.Y. Sup. Ct., App. Div., 2nd Dept., No. 2011-11418, Sept. 19, 2012).

In August 2005, Mary Ellen Malone hired attorney Vincent W. Ansanelli to perform estate planning services, including asset protection, the preparation and filing of an application for Medicaid benefits, and the transfer of Ms. Malone’s cooperative apartment to her daughter, Christina Sobel. At the time Ms. Moore retained attorney Ansanelli, the total value of her assets was approximately $190,000, and she had debts of approximately $60,000.

Ms. Malone died in April 2008 and was retroactively found eligible for Medicaid in July 2008. Mr. Ansanelli sent a final invoice for the Medicaid planning work in February 2008. In total, Mr. Ansanelli charged legal fees of more than $44,000 for his services.

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Malpractice Case May Proceed Against New York Attorney Who Charged More Than $44,000 For Medicaid Planning To Protect Net Estate Worth $130,000