If I have a joint bank account with my mother can I move her funds to a new account in my name in case she moves into a nursing home?

You really need the advice of a CPA and/or attorney who specializes in elder law.

Are you thinking in terms of having Mom qualify for Medicaid? There is a "look back" period where assets have to be accounted for. If she doesn't need care before that period is up that will be different than if she needs a long term care facility next year.

Seek the advice of an experienced professional. It will be worth the cost.

Yes indeed, I also recommend an elder law attorney to help you with this. In my state (Ohio), the Medicaid look back period is five years. Medicaid will check out any transfer of funds. I hired an elder law attorney and in my situation, I am able to keep half of the funds. That's better than giving the whole amount to the nursing home.

You should get an elder care attorney to review your & your mom's situation.

Like the others, I'm assuming your thinking that mom is going to need Medicaid to pay for her care in the future??

Each state has it's own Medicaid rules but in general the person has to have an income of under 2K a month, can own a car and a home if the value is under 500K - 750K (although the home is subject to a states Medicaid Estate Recovery Program) and LTC/SNF is medically necessary. If their over the 2K ceiling, they need to spend down, or do a Miller Trust or get a “Medicaid compliant” annuity (irrevocable, non-assignable, has equal payments, and names the state Medicaid program as the primary or contingent beneficiary to the extent of Medicaid benefits provided to the institutionalized individual). Basically get them to poverty level.

Your joint account is "commingling funds", this is sticky and can be a paperwork nightmare if she needs to go on Medicaid and you could find yourself having to document 5 years of paperwork and expenses in a very short period of time in order to have her approved and show what $$ is yours and what $$ is hers.

It seems to be that Medicaid rules does not allow money earned from work or Social Security to be “commingled” with anyone else’s money. The money of a person who is disabled cannot be commingled or deposited along with anyone else’s money if the person wants to maintain eligibility for Medicaid. This seems to mainly affect Special Needs Trust (that parents do for kids that are disabled). But with states all expecting shortfall's in revenue, they may start looking at the elderly's accounts too. You just can't be too careful when going through Medicaid application to having everything be within the requirements. Good luck.

Well you already made one mistake so let's see if we can assist you in avoiding another.
The simple rule when it comes to planning for Medicaid benefits is:
NO GIFTING.
The quick claim deed represents an uncompensated transfer and therefore, a gift.
As stated above, if you now apply for benefits, or do so within 5 years, a penalty based on the value of the transfer will be imposed.
So, with respect to mom's bank accounts, DO NOT transfer them to an account in your name only.
When and if you are ready to apply for benefits there are tools and techniques that can be implemented to preserve her assets for her benefit while she is receiving public benefits (note I said benefit the elder, not the adult child...I'm not implying anything here, just stating a point of fact because many, as I do, object to planning that simply let's the kids abscond with cash while we all pay for mom's care).
These techniques are not subject to a 5 year look back and so do not have to implemented until you are contemplating benefit application.
Now here is some good news, the mistake you made with respect to the house can be cured by quite claiming the property back to her in her name only.
Understand that in almost all states the homestead property is not a countable asset when applying for Medicaid nursing home benefits as long as mom states an "intent to return" to the home.
If your plan is to keep mom home for the duration, then, too, the property will remain a non-countable asset.
All you will have to worry about, if she receives Medicaid home and community based services, is Medicaid Estate Recovery (the state can lay claim to the exempt home property at her demise).
Again, depending on the state you live in, there are options to avoid this as well.
Important: Are you sure you have a valid Durable Power of Attorney and Health Care Surrogate document in place?
P.S. Medicaid compliant immediate annuities are a bad deal for nursing home residents as all income goes to the facility. If care is being received at home or in an ALF they can, at times, be beneficial. This is rarely the case for an individual. Where there is a community spouse, this strategy can make more sense.

Nice to read expert advice here. I live in NH and was told Mom's house was ok for her to still own and receive medicaid, but, once she passed they take what is owed because they would have to put a lein on her home. Its tricky, they say its ok but then they take their owed money afterwards. We sold moms home and its being used for her her daycare, now homecare, and my care of her along with her diapers,pills, and supplies, etc. As far as I see it, Dad wouldnt want her in a nursing home for us to have an inhertitence, he wanted his wife taken care of first. She was the love of his life. The siblings arent happy but its what it is and with dementia/alz its a long journey. Good posting and interesting .

I don't see it as your mom "losing" her life savings to a nursing home. I see it as her using the money she has saved to pay her own way, as she probably has her whole adult life. Maybe the fact that she has that money will help her pay for at-home care that will allow her to stay in her home longer. What good is the money to her in an account she can't touch? If she's been saving it her whole life, now's the time to use it in the ways that will bring her the most comfort and joy.

"Ditto" Donna, I wholeheartedly agree, its her money, not the childrens. Mom isnt losing her money, the children are and who cares as long as Mom is taken well care of and loved. Home care for Moms care is what I am/was doing with her house money and its about gone now, oh well, she is having a spoiled and comfortable life and what else matters. Moms still staying with me, regardless of money, shes my Mom. Manage the money in a way its best for your Mom, its her hard earned money. Good luck.
Thank you for posting.

Assisted living homes that don't accept medicaid are often much nicer than those that do. It's use the money so that she can live more comfortable in a nicer place. It's her money, so what if it goes to the nursing home? It's money well spent.

I'm not sure what you mean my co-mingling of funds Ralph? I too have a joint account with my mother. It doesn't have much money in it and I just use it to pay her bills since her hand writing is shaky. Should I be keeping track of what is spent?

First, I think you mean "quit claim deed" and second and foremost who knows what the Medicaid law will be in 5 years with our current mess in Washington. Your planning could be all for naught. Best to not plan on Medicaid.

My mother is 87 and in excellent health at this time. She bought US EE savings bonds & I bonds dating back to the early 90's for the EE bonds and 2001 for the I bonds. They are held with the name(s) of each of the 4 living children jointly, using or for ownership. sarah doe or jon doe. If my mother were to go into a nursing home would these bonds be exempt from Medicare Rules because they have existed with this registration for so many years.

@fanoel - good question I would like to know the answer to that one for myself even not that I expect to go in a home but one never knows when that time will be.

I'm sorry I meant ranoel (typo)

Savings bonds!!!. Nothing like doing it old school style. Imho you have 2 different issues here: 1. Ownership of the bonds (whose assets they are) and
2. How bonds work (or "held" and therefore how they can be redeemed).

I was executrix for an aunt who loved doing E bonds both as a way of saving $ & as gifts - you name the occasion (graduation, wedding, birthday) she gave them and did it as co-owner and a few as POD (pay on death). When she died, bonds where still being held by the persons she gave them to. Why they still held them was varied: some had not matured (usually 30 years), some being held for college & some because they didn't know wtf what to do with them. Bonds showed her & them as co-owners. In how bonds work is that you DO NOT need both owners signature to redeem bonds, you just need 1 of the persons listed on the bond to redeem. So none of the bonds were included in her estate, they were the property of the co-owner, as you need only 1 person to claim ownership of the asset to redeem them. The co-owner claimed ownership.They were NOT my aunt's asset, this according to the probate judge. BUT the bonds issued POD (not as co-owners) would be part of her estate but not subject to probate because they were POD (like a bank account POD). If bonds are POD, you need a certified death certificate to redeem or re-register them. How the bonds were done & how they are held likely will make a big difference as to whether it's an asset for her (and for Medicaid review) OR they were a gift and before the 5 year look back AND what the intention was for the bonds. You should talk with an elder care attorney to see what the viewpoint is on bonds are for your area in dealing with Medicaid and probate later on.

Tax wise bonds, I don't think, exist until redeemed or re-registered so I bet they really aren't going to show up on Medicaid financial radar. I was dealing with old school style paper bonds (before the electronic ones they do now) so that might have changed.

You need to look at the bonds to see maturity date. Redeeming them before then (could be 10, 20, 30 years) could cost.

One last thing, banks aren't selling bonds anymore. My late aunt would be just heartbroken about this! So most banks will not redeem them at all & you have to go to the Treasury Dept on-line to do this. Good luck & let us know what's what.

if my mom goes in the nursing home...can my dad keep there joint account open or does my mom need to get her own bank account..

If mom is on Medicaid she will need her own account. Otherwise, it doesn't really matter.

THANKS..SHE IS ON MEDICAID BUT SHE PAYS NOTHING TO THE NURSING HOME..MR ROBBINS CAN YOU TELL ME...I GUESS SHE CANNOT HAVE MORE THAN $2000.00 IN HER CHECKING ACCOUNT..EVEN IF SHE DOES NOT PAY ANYTHING TO NURSING HOME..MY STEP SISTER TOOK MONEY FROM HER CHECKING ACCOUNT WHICH WAS UNDER HER (MY MOM)NAME ONLY..I AM GETTING READY TO GO TO THE POLICE IN LOUISIANA..IS THERE ANYTHING ELSE I CAN DO,,

mysweetcat...
Isn't mom's Social Security going to the nursing home? I would be very surprised if it is not. All of mom's income is supposed to go towards her "patient responsibility" which is determined by the Medicaid agency and is usually all of her income less a small amount for "personal needs".
As far as your sister is concerned going to the police is all you can do besides making sure she had no access to the checkbook in the future!

thanks so much...she was put in nursing home (louisiana)when her husband was still alive..so they still had there joint checking account..so when she was put in nursing home medicade and medicaid paid the nursing home in full..he was getting her s.s checking deposit into the joint account..my step sister open another acccount under my dads name only and had to transfer 34000.00 in to that account so she could get on medicaid..i know this had to be done..she tole me in april 2012 that mom had to open her own checking account per medicaid(but my step dad tole me that he did it because he want my mom to have money when he pass away)but my step sister got a on line banking number and atm card and transfer and took from the atm card.(like i said $5000.00)..she said that my step dad tole her to do it..but you see mr.robbins...no one was on that account but my moms name..the bank said that it is fraud..plus aps..police..attonery general office..in september my step dad died..so i moved my mom her to org..with me so before i left louisiana i when to her bank to get the money that i trough was in there and this is what i found out...plus she had transfer all the money out of my step dad personal account to another account under her name..so she transfer money to 1) from my moms account to 2) there joint account 3) to my step dads account 4) out to another account under her name..i talk to adult protection service here in org..and they tole me that it is fraud to an elderly..they called louisiana and louisiana said because i took my mom out of the area there is nothing they can do (ORG SAID THAT SHE WOULD BE IN JAIL)org.. is saying that the way that money was transfered that it is medicaid fraud...so the attonery general office in baton rouge is looking into it about getting there money back..but the money that i have to try to get back is the money.....that i am on my own...sorry so long..