Can transferring a car title affect Medicaid eligibility?

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Can transferring a car title affect Medicaid eligibility?

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My mother co-signed on a vehicle loan for my brother 5 yrs. ago. The title was in her name. The loan was paid in full in Feb. of this year. She intended to sign the title over to him, but didn’t due to health reasons. She ended up in the hospital, then a rehab center, and it’s been decided she needs 24/7 care. She is applying for Medicaid in Ohio. Can she and my brother still transfer the title, or will it make her ineligible for Medicaid?

Asset Limits Elder Law Medicaid

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Thanks to everyone who answered. I’ve spoken to an elder law atty., and you are all correct. The title is in her name, she has the records to prove she paid for it, it belongs to her, and is her asset. If they transfer the title now, it makes her ineligible. If he wants to buy it from her in the future, he must pay fair market value for it. There is lesson to be learned.. don’t co-sign! It creates a mess!!! Thanks again

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I think it might have been different if she were simply the co-signer and either not on the title at all or listed as well as your brother on title and he was insuring it etc but if she was the only titled owner, paid for it and insured it then she was really the owner not the co-signer even if he was the one using it. At least that the way I would think they would look at it. Being a co-signer means you back up the debt, you are the 'security", her credit the added collateral if you will but borrower and titled owner makes it her car. At least based on my understanding from years ago when I ran the business office in dealerships and did this kind of paperwork.

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Who actually paid the loan on the car? Your mother or your brother?

If it was your brother, and he has all the documentation to prove it, I'd give Medicaid a call and ask them. That way, even if they won't waïve the asset, the car is your mother's but she owes him the money for it.

If your mother in fact paid for the car, can your brother now afford to buy it from her at current market value?

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With Medicaid it doesn’t matter who paid for the car. If the title is her name, it’s her asset. It makes no difference who paid for it. So yeah doesn’t matter if the brother can prove he paid for it, not to Medicaid.

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The car issue and Medicaid is so unfair. In NC, a person on Medicaid can own a car. But my mom with ALZ--by common sense and by doctor's orders--has not allowed to drive her car since last October. Yet, if she sells it, it goes against her getting Medicaid as far as the look back period. Yet if she keeps it, she must keep paying for insurance. Ridiculous!

Sorry, just a rant and not answering the question....

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You can put the car in storage, like a garage. You do not have to insure it if not being driven. By garaging it, no need for registration. In NJ, if car is on the street or in plain sit, a cop may ticket it if registration not up to date or no tags. Its considered a junk car. If garaged, then no one sees it.

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Here is an answer for most people:

If you are asked to co-sign anything- THINK TWICE and do NOT CO-SIGN.

YOU ARE NOT DOING YOURSELF ANY FAVOR...... PERIOD

You are creating issues down the line for yourself and the people who really care for you.

IF YOU CAN AFFORD TO CO-SIGN, then you can afford to hand them some cash for whatever purchase they need. and DO NOT EXPECT IT BACK... That way, relationships are not SEVERED and you don't expect it back = "gift" "gamble", whatever you want to call it...

That is what banks are for - loans... Why do you think we have some many "CHASE BANKS" on every single corner? Credit card rates are way too high, and extremely convenient. I'm on this rant, because another Chase was just opened down from another Chase about a 1/2 mile away...

Tr to live within your means, easier said than done....

thanks for listening. Goodnight

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I definitely agree with one thing--it IS a rant! :-)

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If it’s community Medicaid ie 24:7 home health aide you can transfer and be eligible the following month but for institutional there is a 5 yr lookback

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In NH the Medicaid allows the person to own a vehicle. As a family member just Leave The Title Alone. Use and maintain the car in her name. If you take it out of her name they want the book value and will take it in the spend down. Hence take the money.

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DON'T DO IT....WILL RAISE RED FLAG...TOO CLOSE TO YOUR APPLYING.xx

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I agree.

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Sounds like both their names are on it......you might be ok if you can prove he made the payments and she just co-signed; it's not a transfer of the title, really, she's just removing her name from it. I'd check with a lawyer. They get funny about this stuff. You're allowed one vehicle in Iowa, but they still want to know what it's worth. If she needs 24/7 care, will it be in a nursing home? Maybe it works like houses? They don't take the house as long as one of the family continues to live there.

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Before medicaid application, she can tranfers car title (ownership) to him. So when you apply you can truthfully say she doesn't have a car.

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A car is a non countable asset as far as Medicaid goes, but best to check with an elder estate lawyer.

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This isn’t actually correct for the OPs situation. You can have a car but you can’t just sign it over to someone or sell it during the Medicaid process.

Can transferring a car title affect Medicaid eligibility?

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