My father offered to be a co-signer on an auto loan. If he co-signs will this effect his Medicaid or social security benefits which he just applied for? I’d be paying the loan and not him. But will Medicaid come across this information and possibly penalize or is this information they aren’t concerned with?

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You should ask his Medicaid rep.

If he has 1 car already, it could cause a penalty because you can only have one vehicle to qualify.

Honestly I think that asking a senior to co-sign is financial exploitation and they should not be asked to put themselves in a position to be responsible for someone else's debt. It doesn't just go away because they are old, it can cause undo stress for them.
Helpful Answer (3)
Reply to Isthisrealyreal

In general, it is a bad financial move to co-sign on any loan for anyone, your own kids and parents included. If the potential borrower can not qualify for the loan, he/she should not borrow the money. Find a cheaper car.
Helpful Answer (3)
Reply to polarbear

SS doesn't care how you spend your money. Do you mean Medicare? That is health insurance you r entitled to at 65. Has nothing to do with finances u have.

If Dad is on Medicaid for his care in a home, he has no money of his own to cosign. If on Medicaid for Medical, he gets it because he is low income. Medicaid in the will be a debt he may not or cannot pay off if the other person stops paying the loan.

He does understand that as a cosigner he will be held liable for the debt if the other person does not make monthly payments. I would not do it unless I could afford the loss. If the other person needs a cosigner its either because they have no credit history and need to establish credit or their credit is bad. We have done this for our daughter one time, to establish credit. We also were both working at the time.
Helpful Answer (1)
Reply to JoAnn29
Jjack86 Nov 7, 2018
Yes I mean Medicaid. When they do their 5 year lookback, are they going to see that he co-signed on a loan and possibly penalize him for it? Or do they not care about that?
Co-signing will not affect his social security in any way. I do not know about his Medicaid. Medicaid is interested in his assets.
Helpful Answer (0)
Reply to UsedupDIL

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