[Cite as Stutz v. Ohio Dept. of Job & Family Serv., 2017-Ohio-7287.]

IN THE COURT OF APPEALS OF OHIO 

THIRD APPELLATE DISTRICT 

VAN WERT COUNTY 

 

BARBARA STUTZ, 

 PLAINTIFF-APPELLANT, CASE NO. 15-17-02 

 v. 

OHIO DEPARTMENT OF JOB O P I N I O N 

AND FAMILY SERVICES, 

 DEFENDANT-APPELLEE. 

 

Appeal from Van Wert County Common Pleas Court 

Trial Court No. CV 16-03-032 

Judgment Affirmed 

Date of Decision: August 21, 2017 

 

APPEARANCES: 

 

William J. Wildenhaus for Appellant 

 Rebecca L. Thomas for Appellee 
Case No. 15-17-02 

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ZIMMERMAN, J. 

{¶1} Appellant, Barbara Stutz (“Ms. Stutz”), appeals the January 31, 2017 

judgment of the Van Wert County Court of Common Pleas affirming the 

Administrative Appeal Decision of the Ohio Department of Job and Family 

Services. Specifically, the Court of Common Pleas found that Appellee, the Ohio 

Department of Job and Family Services (the “Agency”), correctly determined that: 

(1) there is no mechanism for rebutting a properly calculated value of a life estate 

calculated under Ohio Adm.Code 516:1-3-05.17(F); (2) that Ms. Stutz did not 

comply with administrative requirements for selling her life estate at its fair market 

value; and (3) that the Administrative Code section addressing life estates is 

reasonable and must be strictly followed. The trial court thereby ordered that the 

decision of the Administrative Appeal Officer be affirmed, which resulted in Ms. 

Stutz having a period of restricted Medicaid coverage. 

{¶2} Ms. Stutz appeals the trial court’s decision, arguing that: (1) the trial 

court erred in finding that there was no mechanism under the Ohio Administrative 

Code to rebut the presumption of an improper transfer; (2) the trial court erred in 

finding that Ms. Stutz did not present evidence of a challenge to the value of her life 

estate; and (3) the trial court erred in finding that it was necessary for Ms. Stutz to 

attempt to sell her life estate to be eligible for Medicaid benefits. For the reasons 
Case No. 15-17-02 

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that follow, we affirm the trial court’s decision and overrule Ms. Stutz’s assignments 

of error. 

Background

{¶3} The facts in this case are generally undisputed by the parties. Ms. Stutz 

entered a nursing home facility on March 20, 2014, and was approved for Medicaid 

on July 1, 2014. At the time she entered the facility, Ms. Stutz owned a life estate 

in her real estate property and her sons owned the remainder interest. However, Ms. 

Stutz’s life estate was established prior to Medicaid’s five year “look back” period, 

and as a result, the value of the life estate was not considered in determining her 

Medicaid eligibility. Subsequently, the Agency determined Stutz’s life estate 

interest was an asset that must be valued for Medicaid purposes. 

{¶4} Ms. Stutz had her life estate appraised at a value of $2,000, and on 

November 20, 2014, sold it to her sons for $1,800. However, the Agency 

determined that the correct life estate value was $24,941, not $2,000, and deemed 

the sale of it for $1,800 was less than its fair market value. As a result, Ms. Stutz 

received a notice of a “Restricted Medicaid Coverage Period” (“RMCP”) from 

Medicaid officials. The notice informed Ms. Stutz that her RMCP was to run from 

November, 2014 to June, 2015, based upon the improper transfer of her life estate 

(to her sons) for less than its fair market value. 

{¶5} Ms. Stutz appealed and requested an administrative hearing. 
Case No. 15-17-02 

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{¶6} On January 14, 2016, an administrative hearing was held on Ms. Stutz’s 

appeal. At the hearing the value of Stutz’s real estate was determined to be $51,170. 

Given that value, and the fact that Ms. Stutz was 77 years old at the time she entered 

the nursing home, the hearing officer determined the fair market value of the life 

estate, pursuant to Ohio Adm.Code 5160:1-3-05.17(F) was $24,941. In her attempt 

to rebut this value, Ms. Stutz produced several appraisals indicating that her life 

estate had little or no value. However, in its Decision mailed 02/08/2016, the 

hearing officer found that Ms. Stutz’s failed to follow the procedure outlined in Ohio 

Adm.Code 5160:1-3-07.2(D), which set forth the statutory process to rebut the 

presumption of an improper transfer. And, since Ms. Stutz did not properly rebut 

the presumption of an improper transfer under Ohio Adm.Code 5160:1-3-07.2(D), 

the Agency’s decision was affirmed by the administrative hearing officer. 

{¶7} Ms. Stutz timely appealed the administrative decision to the Van Wert 

County Court of Common Pleas, presenting three assignments of error for review. 

Ultimately, the trial court found that the Agency properly calculated the fair market 

value of Ms. Stutz’s life estate for Medicaid purposes; that Ms. Stutz did not provide 

evidence of her attempts to sell her life estate at the statutorily required fair market 

value; and that the administrative code was not unreasonable and must be strictly 

enforced. In its judgment entry filed on January 31, 2017, the trial court overruled 
Case No. 15-17-02 

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Ms. Stutz’s assignments of error and affirmed the decision of the Administrative 

Appeal Officer. 

{¶8} From this judgment entry Ms. Stutz appeals to this Court, asserting the 

following assignments of error: 

ASSIGNMENT OF ERROR NO. I 

THE COURT ERRED IN FINDING THAT THERE IS NO 

MECHANISM UNDER THE OHIO ADMINISTRATIVE CODE 

TO REBUT THE PRESUMPTION OF AN IMPROPER 

TRANSFER. 

ASSIGNMENT OF ERROR NO. II 

THE COURT ERRED IN FINDING THE APPELLANT DID 

NOT PRESENT EVIDENCE OF A CHALLENGE TO THE 

VALUE OF HER LIFE ESTATE. 

ASSIGNMENT OF ERROR NO. III 

THE COURT ERRORED [SIC] IN FINDING IS [SIC] WAS 

NECESSARY FOR THE APPELLANT TO ATTEMPT TO 

SELL HER LIFE ESTATE. 

{¶9} Due to the interrelated nature of Ms. Stutz’s assignments of error, we 

elect to address the assignments of error together. 

Assignments of Error I, II, and III 

{¶10} Ms. Stutz alleges in her assignments of error that the trial court erred 

in finding that there is no mechanism under the Ohio Administrative Code to rebut 

the presumption of an improper transfer; that the trial court erred in finding that she 

did not present evidence challenging the value of her life estate; and the trial court 
Case No. 15-17-02 

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erred in finding that it was necessary for Ms. Stutz to attempt to sell her life estate1

. 

Moreover, Ms. Stutz argues that she followed Ohio Adm.Code 5160:1-3-05.1(B)(4) 

in determining the “fair market value” of her life estate, and documented and sold 

her life estate for its “fair market value,” which rebutted the presumption that the 

transfer of her life estate was improper. For the reasons that follow, we disagree. 

Standard of Review 

{¶11} An appellate court’s review of an administrative decision is more 

limited than that of a trial court, and therefore, an appellate court will only determine 

if the trial court abused its discretion upon review. Williams v. Ohio Dept. of Job & 

Family Servs., 2012-Ohio-4659, 978 N.E.2d 1260, ¶ 26 (3rd Dist.) citing Nye v. 

Ohio Bd. of Examiners of Architects, 165 Ohio App.3d 502, 2006-Ohio-948, 847 

N.E.2d 46, ¶ 11 (10th Dist.). “However, an appellate court does have plenary review 

of cases involving purely legal questions.” Id. at ¶ 27 citing Big Bob’s, Inc. v. Ohio 

Liquor Control Comm., 151 Ohio App.3d 498, 2003-Ohio-418, 784 N.E.2d 753, ¶ 

15 (10th Dist.). Because Ms. Stutz only raises legal questions regarding the 

interpretation of the applicable law, the standard of review to be applied on this 

appeal is de novo. Id. 

 

1

 While Ms. Stutz alleges in Assignment of Error III that the trial court erred in finding that it was necessary 

for her to attempt to sell her life estate, Stutz does not analyze her assignment of error but again restates that 

she did not attempt to sell her life estate at the value calculated by statute because three experts had said her 

life estate was not salable at that value. 
Case No. 15-17-02 

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Analysis 

{¶12} Pursuant to former Ohio Adm.Code 5160:1-3-07(B)(5),2

 the Agency 

found that Ms. Stutz committed an “improper transfer” when she, as a Medicaid 

recipient, transferred her life estate for less than its fair market value for the purpose 

of obtaining Medicaid benefits. Former Ohio Adm.Code 5160:1-3-07(B)(5) defines 

improper transfer as: “a transfer on or any time after the look-back date, as defined 

in paragraph (B)(9) of this rule, of a legal or equitable interest in a resource for less 

than fair market value for the purpose of qualifying for medicaid, a greater amount 

of medicaid, or for the purpose of avoiding the utilization of the resource to meet 

medical needs or other living expenses.” (Emphasis added). Ohio Adm.Code 

5160:1-3-07(B)(5). 

{¶13} In her appeal, Ms. Stutz directs us to Ohio Adm.Code 5160:1-3-

05.1(B)(4) to define the term “fair market value” as it pertains to her life estate. 

However, Ms. Stutz’s reliance on Ohio Adm.Code 5160:1-3-05.1(B)(4) is 

misplaced because a specific statutory process exists in the Administrative Code as 

to the valuation of a life estate. Specifically, Ohio Adm.Code 5160:1-3-05.17, 

entitled “Medicaid: life estates and life leases,” provides a table outlining the 

statutory formula for calculating the value of a life estate. Under Ohio Adm.Code 

 

2

 Ohio Adm.Code 5160:1-3-07(B)(5) was repealed on January 1, 2016, but was in effect at all times pertinent 

to Stutz’s appeal. 
Case No. 15-17-02 

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5160:1-3-05.17(F), the Ohio legislature promulgated the following formula to be 

used to determine the value of a life estate: 

(1) The administrative agency must first determine the value of the 

property as established by the county auditor. If a valuation by a 

county auditor is unavailable, the value shall be based upon a 

valuation by the appropriate governmental agency charged with the 

responsibility for valuation of real property. 

(2) The administrative agency must deduct from the value of the 

property all liens and encumbrances that have been placed against the 

property. 

(3) The administrative agency must deduct from the value of the 

property all liens and encumbrances that have been placed against the 

life estate. 

(4) After the deductions, the balance is the equity value of the 

property. 

(5) The administrative agency must multiply the equity value of the 

property by the product that corresponds to the life estate owner's age 

at the time of determination for medical assistance on the following 

life estate table: 

Ohio Adm.Code 5160:1-3-05.17(F). The table identifies a list of ages, from 0 to 

109, which represent the age of the life estate owner. The table also provides a list 

of life estate percentages, or equity values of the life estate. For example, for 

someone who is 77 years old, the life estate percentage is .48742. Id. For someone 

who is 78 years old, the life estate percentage decreases to .47049. Id. 

{¶14} In this case, it is not disputed that the Agency used this table and 

formula to determine the value of Ms. Stutz’s life estate to be $24,941 ($51,170 x. 

.48742). However, Ms. Stutz argues that instead of relying on this specific set of 

instructions to calculate the value of her life estate under 5160:1-3-05.17(F), the 
Case No. 15-17-02 

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Agency should have used the general definition of fair market value, as defined in 

Ohio Adm.Code 5160:1-3-05.1(B)(4), to value her life estate. Ms. Stutz further 

alleges that it would be unreasonable for anyone to purchase her life estate at the 

value determined by the Agency under Ohio Adm.Code 5160:1-3-05.17(F). 

{¶15} At the outset, we note that the Ohio Supreme Court has stated that 

“administrative regulations are presumed reasonable, both factually and legally, and 

the burden rests on the party challenging the rule to introduce evidence to the 

contrary.” Roosevelt Properties Co. v. Kinney, 12 Ohio St.3d 7, 13, 465 N.E.2d 

421, 427 (1984). Accordingly, Ms. Stutz must do more than simply show that 

another valuation method may be more “reasonable.” Cook v. Ohio Dept. of Job & 

Family Services, 4th Dist. Jackson No. 02CA22, 2003-Ohio-3479, ¶ 13. Rather, 

Ms. Stutz must prove that that the Agency’s reliance on Ohio Adm.Code 5160:1-3-

05.17(F) was not reasonable. Id. 

{¶16} In her attempt to demonstrate that the valuation of her life estate under 

Ohio Adm.Code 5160:1-3-05.17(F) was unreasonable, Ms. Stutz directs us to Ohio 

Adm.Code 5160:1-3-05.1(B)(4), which defines “fair market value” as: “the going 

price, for which real or personal property can reasonably be expected to sell on the 

open market, in the particular geographic area involved.” Ohio Adm.Code 5160:1-

3-05.1(B)(4). Ms. Stutz avers that since local realtors and bankers valued her life 

estate at $2,000, and in reliance thereof, she sold such interest to her two sons for 
Case No. 15-17-02 

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$1,800,3

 she successfully rebutted the presumption that her transfer was improper. 

We disagree. 

{¶17} The general rule of statutory construction is such that a specific statute 

prevails over a general statute unless the general statute can be shown to be the later 

adoption of the two and the manifest intent of the General Assembly was to have 

the general provision control. Summerville v. Forest Park, 128 Ohio St.3d 221, 

2010-Ohio-6280, 943 N.E.2d 522, ¶ 32 (2010). As such, Ms. Stutz has failed to 

demonstrate that the general statute defining “fair market value” (Ohio Adm.Code 

5160:1-3-05.1(B)(4)) should be used by the Agency instead of Ohio Adm.Code 

5160:1-3-05.17(F), the specific statute, to value life estates. As such, by its plain 

and unambiguous meaning, we find that Ohio Adm.Code 5160:1-6-05.17(F), not 

5160:1-3-05.1(B)(4) must be used to value a life estate. As such, the trial court 

correctly determined the value of Stutz’s life estate. 

{¶18} Further, Ms. Stutz’s argument that the trial court erred when it stated 

that there is no mechanism under the Ohio Administrative Code to rebut the 

presumption of an improper transfer is misplaced. Specifically, the Judgment Entry 

of the trial court stated that: “[t]he Court finds that there is a specific regulation for 

calculating the value of a life estate. There is no mechanism for reducing that value 

by any other market calculation.” (Doc. No. 32 at 5). The trial court also addressed 

 

3

 Selling her life estate for $1,800 was in accordance with Ohio Adm.Code 5160:1-3-31.3, which required 

that Ms. Stutz sell her life estate if she received an offer for at least 90% of its appraised value. 
Case No. 15-17-02 

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the specific regulation for rebutting the presumption of an improper transfer, found 

in Ohio Adm.Code 5160:1-3-07.2(D), which states: 

(D) Rebutting the presumption of an improper transfer. 

(1) The individual may rebut the presumption established 

under paragraph (C) of this rule. The individual must first 

provide a full written accounting and documentation of the 

transfer which clearly explains the following: 

(a) The purpose for transferring the resource; and 

(b) The attempts to dispose of the resource at fair market 

value; and 

(c) The reasons for accepting less than fair market value 

for the resource; and 

(d) The individual's relationship, if any, to the person to 

whom the resource was transferred. 

(2) The evidence may include, but is not limited to: any 

documentary evidence such as contracts, realtor agreements, 

sworn statements, third party statements, medical records, 

financial records, court records, and relevant correspondence. 

(3) Evidence which is provided shall be reviewed by the 

administrative agency. 

(4) The occurrence of one or more of the following after a 

transfer of the resources, while not conclusive, may indicate 

resources were transferred exclusively for some purpose other 

than establishing medicaid eligibility: 

(a) Traumatic onset of disability or blindness (e.g., due to 

traffic accident); or 

(b) Diagnosis of a previously undetected disabling 

condition. 

(5) If the presumption of improper transfer is not overcome by 

the individual's rebuttal, the administrative agency shall restrict 

medicaid coverage if the individual is otherwise eligible for 

medicaid. 

(Id. at 3; Ohio Adm.Code 5160:1-3-07.2(D)). 

 

{¶19} In our review of the record, we find that the trial court determined that 

a statutory process exists to rebut the presumption of an improper transfer which 
Case No. 15-17-02 

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Ms. Stutz failed to follow. Even though Ms. Stutz argues that she followed the 

requirements (of rebutting the presumption of an improper transfer) the record 

demonstrates that she did not since she did not attempt to sell the life estate for 

$24,941, its fair market value under Ohio Adm.Code 5160:1-3-05.17(F). Rather, 

Ms. Stutz asserts that she documented her attempts to sell her life estate at the “fair 

market value” per Adm.Code 5160:1-3-05.1(B)(4), to her sons, and thusly rebutted 

the presumption of an improper transfer. In other words, Ms. Stutz’s argues that the 

sale (to her sons) was not an improper transfer, based upon the general definition of 

“fair market value,” not the specific formula set forth in Ohio Adm.Code 5160:1-3-

05.17(F). For the reasons stated above, this argument fails. Additionally, Stutz’s 

assertions are insufficient to satisfy her burden that the Agency’s reliance on Ohio 

Adm.Code 5160:1-3-05.17(F) was irrational, absurd, preposterous, or senseless. 

See, Cook, 4th Dist. Jackson No. 02CA22, 2003-Ohio-3479, ¶ 13. 

{¶20} Finally, Ms. Stutz attempts to demonstrate that the “fair market value” 

calculated by the Agency using Ohio Adm.Code 5160:1-3-05.17(F) was 

unreasonable, by directing us to Administrative Appeal No. 1852060, in which a 

similar transaction rebutted the Agency’s finding (of an improper transfer) by clear 

and convincing evidence. However, that decision is distinguishable from this case 

because the Appellant (in Administrative Appeal No. 1852060) did not dispute the 

value of the life estate used by the Agency. And since Stutz contests the Agency’s 
Case No. 15-17-02 

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valuation process, Administrative Appeal No. 1852060 is clearly distinguishable. 

Furthermore, “Ohio Adm.Code 5101:6-7-01(H) provides ‘that State hearing 

decision shall be binding on the agency or managed care plan for the individual case 

for which the decision was rendered.’” (Emphasis added). Williams, 2012-Ohio4659, 978 N.E.2d 1260, ¶ 40 (3rd Dist.). Thus, this argument lacks merit. 

{¶21} While we are sympathetic to Ms. Stutz’s position, ultimately, we find 

that Ms. Stutz did not establish that Ohio Adm.Code 5160:1-3-05.17(F) was 

unreasonable, and that Ms. Stutz’s reliance on the general definition of “fair market 

value” to value her life estate was improper. And finally, Ms. Stutz failed to rebut 

the presumption of an improper transfer by clear and convincing evidence by selling 

her life estate to her sons for $1,800. 

{¶22} Accordingly, we find that the trial court’s interpretation of relevant 

statutes, the Agency’s decision, and statutory construction was not unreasonable and 

overrule Ms. Stutz’s first, second, and third assignments of error. 

Judgment Affirmed 

PRESTON, P.J. and SHAW, J., concur. 

/jlr