The Texas Health and Human Services Commission appealed the district court’s decision to allow a Medicaid applicant’s resources to not be counted on the date she was first deemed incapacitated by her doctor, rather than when the court deemed her incapacitated.

Due to confusion with new guardianship laws in Texas, the court did not appoint a temporary guardianship over the applicant’s estate until after the court ruled that the applicant had too many resources and was therefore deemed ineligible for benefits.

The appeals court clarified that the applicant did not become incapacitated only once the court recognized her incapacitation and appointed temporary guardian over her estate, but rather, “a reasonable mind could only conclude that the applicant was incapacitated from the date of her admission” to the facility.

Due to her incapacitation, she did not have the power to liquidate her assets nor the ability to manage her property until she was appointed a temporary guardian. The appeals court affirms the decision of the district court’s judgement of reversing the denial of Medicaid benefits prior to receiving an appointed guardian.