How to go about saving my mom's car from estate recovery or probate after passing away?

Your parents are Community Medicaid with rules just like if they were in LTC. I think the asset cap is the same. They cannot sell it to you for a $1. Can't transfer it upon death. Yes, its exempt now, but if sold, must be at Market value. Then, your back to trying to spend down the money. If Mom goes before Dad, then it may transfer to Dad. So will still be exempt. Upon death of both parents it becomes an asset. An asset that needs to be sold at Market Value and the money goes to Medicaid.

All Mom and Dad should have after their deaths is maybe a home and a car. If you can prove that you were their Caregiver for over two years and lived with them, you may be able to stay in the home and have the car. Liens will be placed on both. If you sell them, Medicaid will get what is owed them. If you are allowed to stay in the home, the lien stands and will need to be satisfied if you leave, sell or pass.

You should talk to your parents caseworker and run this by them. I was told by Moms caseworker that when Medicaid is involved Wills are pretty much null and void.

Have a Transfer on Death (TOD) put on the title.

In Colorado...[t]here are other assets that are non-countable; they are exempt from Medicaid's asset limit. Exemptions include personal belongings, household furnishings, an automobile, irrevocable burial trusts, and generally one's primary home Source: https://www.medicaidplanningassistance.org/medicaid-eligibility-colorado/#:~:text=Countable%20vs.,-Non%2DCountable%20Assets&text=In%20Colorado%2C%20IRA's%20and%20401K,and%20generally%20one's%20primary%20home. So, you don't have to worry about the car.

I really think this is an attorney question. In California you can be added to the title of a car easily and if a member of Triple AAA you can do it right in their office. However, where Medicaid is concerned that complicates things; you cannot have a situation where there is "gifting" of a car that was listed as her assets.

I am thinking if this is your only question you would have good luck simply asking an attorney online for a call, and avoid an hourly fee. You might also consider directly contacting Medicaid and asking for a caseworker or advisor to discuss options for your state. Good luck.

Is this the new car bought with mom's settlement?

Have them sell you the car for $1 .