There are multiple names on mom's bank account. My sisters and my name are on my mothers account, along with hers. We were told that money can be taken out because of more than one name on the account, and my mother wouldn't be held responsible if applying for Medicaid. I don't believe it, is it true?

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Yes. Probably the central question as far as Medicaid is concerned is who's account does it belong to; who is the owner?
If the account is in mom's name; bank statements are addressed to her or if more than 1 name her's is the first name on the statements; has her SS # attached to it; the account gets her SS and other retirement; her signature is the principal on the account…then it's her's as far as Medicaid is concerned. Ask a bank officer to get this answer.

If you & Sissy have co-signature privileges on the account, that's ok BUT the account is owned by mom and is mom's asset for Medicaid. I was a signature on my mom's account but it was her's and there was NO commingling of funds of her's or mine on it and I would pay whatever for mom from her account (like her SOC @ the NH) and it was done to be POD to me upon her death - this is a pretty common way to deal with parents accounts by their DPOA.

For Medicaid, All funds in the account have to be used for her, her care or her property in order for Medicaid to approve mom and the lookback on all transfers or withdrawals is up to 5 years. For my mom it was 3 years & 6 months of bank statements and for even more fun a letter from bank officer as to the disposition of any and all CD, T Bills when they were closed out for 5 years. All went into mom's main drawing account so she was good, but IF any CD had just been cashed out there would have been a transfer penalty inquiry on the amount I imagine.

What you are probably hearing is partially correct:
yes, you or Sissy as a signature on the account can fully take funds out; the bank has no problems as you are a signature on the account. Sissy could go tomorrow and take all the $ out totally. But for Medicaid unless you can clearly document that that check for $ 850.00 that Sissy cashed has a matching receipt for something directly needed for mom's care, there likely will be a transfer inquiry done when the review happens on the documents submitted.

One issue with transfer inquiries is that when they happen, the application tends to go to a higher level of review as the thought it if there's 1 transfer there will be others. So really if you are have been writing checks for cash or mom has been writing checks to you or Sissy or "cash", anticipate being asked to document just where that $ went to and in detail.
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