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So we are aware that my aunt might keep her car she’s obviously not going to need it and it is already been discussed before we even consider applying for Medicaid transferring the car over to a family member. We were told not to do anything at the time since we’re applying for Medicaid we wanted to make sure that she was accepted first. We understand that she has allowed only have so much money in her savings or checking but we also know that we are going to need to buy things for her and do things to help for her care while she’s there $3000 is not gonna last very long .



our question is.. can we sell the vehicle to a family member who will only make payments of say like $200 a month so that that will keep her personal account below the amount that she can have, but will allow the account to continue to have funds to purchase things for her, clothes, shoes, personal care, getting her hair done, etc.

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Medicaid rules can vary by state. Here's what our family did for my MIL in LTC on Medicaid: kept the car title in her name, sold it for as much as we could (it was an old, decrepit van) for cash. My hubs has 3 siblings but I was managing her affairs mostly. I let them know the exact cash purchase amount and then kept the money in our home to use to purchase only items and services for her. I kept all receipts and every once in a while gave an update on the balance left. I honestly can't remember how her 2nd annual application asked, but I think it just asked if she owned a vehicle at that point and the answer was "no". We were prepared to tell them it had no value and was donated or junked. After that, I've not had to fill out an actual app for her anymore.

If you do sell the vehicle for cash, be sure to make 2 copies of a Bill of Sale that both you and the buyer signs (and make sure to get their info off their actual driver's license, plus their phone number). Then make sure you go with them to the DMV or govt office to make the title transfer then and there. Do NOT trust the buyer to do this. I've been burned twice and had to pay their speeding and parking tickets. If you're nervous about doing the transaction, meet at either your bank or theirs. Lots of cameras and people, plus they have no excuse if they come up "accidentally" short on the agreed payment amount (also been there, done that).
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Yes it would be family transaction, actually my first cousin and her husband who have been helping in her care.
they actually offered to take the car off her hand so that she won’t have to pay the insurance or the title and taxes and stuff and leave it sitting right there for her to use as long as she wanted it …..which she doesn’t actually drive it but it’s a good thing that we didn’t because that might’ve caused red flags and she might not qualify for Medicaid when we do…. so we’re trying to figure out what we can do after that.
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The longer you hold on to the vehicle the less you can sell it for. If you sell it to a family member, it should be for FMV (fair market value) because your Mom needs the money. Also, the family purchaser should pay it all upfront, not in monthly installments. Sorry, you need to operate in your Mom's best interests, not the benefit of other family members.
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