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Hello-I have been keeping my moms (2008 CRV 2WD) for a few months at my place which is out of town so I could do some repairs and try to clean out the mess her housemate left.
Mom is in a NH and will be long term. I submitted the info for her medicaid application and am waiting for that to kick in. The NH said medicaid will retroactively cover her stay.
She has dementia and no POA and she mentioned I could have the car as she can no longer drive. Due to living in an apartment, having multiple cars can be a nightmare when plowing season comes.
Will medicaid take the car eventually? Currently it is a nice backup in case my car dies. If I cant own it I was thinking about driving it back to her place and bus home.



Thanks

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The car needs repairs so the market value is questionable. Rather than add more headaches, I would prefer to just park it at her place and let it be.

I did have to sign some admission papers even though Im not officially anything.
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Geaton777 Apr 29, 2025
Please read the copy of what you signed to make sure it doesn't hold you financially responsible, even if you aren't her PoA this is what happens to unsuspecting people.
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You could consider just keeping it, but her insurance would be an issue, yes, on the car?
So there is that to discuss with her insurer.
Also, leaving it not driven, etc. may be a problem. Don't know what storage back at mom's looks like, so for you to answer.
Yes, if you when seeking Medicaid assistance, wrote down that car as an asset, then it can come as something considered in Medicaid recovery after mom passes.

I am assuming only your other is on title of this car.
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Thank you the replies. She does not have a poa. She is competent to sign for things. I am not sure if it is listed under medicaid. The car is not worth much as it still needs a lot of work. If it cant be kept and it is considered a medicaid asset then cant they can try to sell it? I would then not want to mess with it.
Thanks
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AMZebbC Apr 29, 2025
It can be kept and is allowed within your mothers State Mediciad regulations. The sale of the car is then a cash asset and goes against the allowed assets that may put your mother above the state threshold and then you will need to spend down to the state threshold. They don't act as a seller/buyer but regulator of allowable funds to qualify for the MLTC. It is up to the POA or guardian to act as the overseer and proper use of her funds.

If you do not have POA, then your hands are tied unless you can get her to sell the car and sign over the title (for fair market value - IMPORTANT detail). If you can't, take her car to her house and store it. Upon her death, Medicaid will do a claw back and put a lien on her estate (if any) to recoup their costs of LTC. But that isn't the same a taking physical property and selling themselves. The estate is sold for cash and held in her estate account. Then any leins are paid cash from the account. It is purely paperwork and legal avenues.

That is the reason it is so important for elderly to assign someone as POA. It isn't about them losing control of their money it is about choosing someone to act in their best interest should the elder be unable to do so for themselves. You seem to not have either so your hands are tied.

If she is in a nursing home has the Social worker or Administrator filed for guardianship? I highly suggest you speak with an eldercare attorney to see if you can be of any help for your mother and to protect yourself. Do not sign anything in your name with the facility your mother is at.
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Mom can't assign POA if she has significant dementia.

You can probably use the car as long as it is insured but that might be an issue if you are not the owner.

If Mom can sign her name, you can have her sign the title and register the car in your own name if you want the car. It becomes legally a gift to you.

Otherwise, you could take it to Carmax and sell as is. That money will be used for Mom since she is already in the NH.

In any case, there is no reason to just drop the car back since she can't drive it.
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AMZebbC Apr 29, 2025
While this is doable it is also considered a non allowable gift per State Mediciad LTC rules (however legal in IRS eyes is not relevent). The amount of the gift (fair market value of car) will count towards her assets and possible put her over the threshold allowed. Then Mediciad LTC will penalize her for a specific amount that will be owed to the Nursing home. Again if not paid at the time, Mediciad will do a claw back.
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Is the title in her name only and can she still sign her name or are you can a POA be obtained? Is the car listed on the Medicaid long-term care application?

If yes, you can sell BUT the sale will be considered part of the assets category for Medicaid. This money may put her over the state allowed limit and will have to be used to get back to the spend down limit. This money should be used only for her care as allowed purchases per your state Medicaid regulations.

Keep all receipts and documents to support any questions from Medicaid.
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Medicaid doesn't "take" cars or homes. If your Mom can still sign her name you can transfer the title to yourself, then sell it and use the proceeds to buy her nice things. Otherwise you won't be able to sell it without being her PoA so you might as well just use it until it dies... but then you hopefully won't have to pay to have it junked. You can't even donate it or sell it for junk without the title in your name. Maybe park it where it will get towed and then it will be impounded and you don't have to worry about it anymore because you won't have the title to reclaim it.
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DrBenshir Apr 29, 2025
You can't just abandon a car without reporting it stolen, even if you ditch the plates. At some point someone will look up the VIN and trace it back to the last registered owner. Mom might remember giving it away, which will be a big headache.
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