Has anyone driven a vehicle received from an elderly parent and then given it back when Medicaid was needed? How did it work out? My 86 yr old father gave me a $30,000 vehicle this year. My mother has dementia and is in a memory care facility. Neither of them is receiving Medicaid at this point, but I think it is a definite possibility within the next 5 years. I understand that Medicaid would want the vehicle back. I've already changed the title over to my name.

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You’ve already transferred car title, right?
Its a done deal, recorded & dovetails into states records. If I was in this situation, I’d just leave paperwork as it is and deal with any changes before she applies for Medicaid IF it is definitely looking like LTC Medicaid will be applied for by your mom. Mom’s MC right now is being private pay and Medicaid is not involved. But eventually she’ll run out of joint assets and need to look to Medicaid. I’d suggest dad meet with a elder law atty before they get to the 120k maximum allowed (for most states) for a community spouse to plan how to do her Medicaid application.

You know couples Medicaid planning is very very different than for an individual application. Your dad is NOT expected to himself become impoverished (that what keeping the 120k allows for); only your mom who is applying for in a facility LTC Medicaid needs to be impoverished with a max of 2k in assets and within whatever your state has as her income maximum for Medicaid eligibility. If mom’s monthly income (like her own SS $) is needed to keep dads household afloat then dad can file for CsRA or MMNA. These are 2 acronyms for spousal allowance that can waive all or a part of mom’s income from going to the NH as mom’s copay to instead go to dad to cover his costs for him to live in the community as a community Spouse. CSRA / MMNA isn’t necessarily done automatically but may need to be filed for and dad may need to show he needs CSRA. Also dads own “income” is not a factor for mom’s being able to be eligible for LTC Medicaid. Sometimes couples shift some assets to instead become income for the CS spouse, like through a SpIA. Doing stuff like this is imho, NOT ever a DIY. Those SPIAs must be Medicaid compliant annuity & they are unique with specialty underwriting needed, not done by your friend or a FA with an insurance license. Really your parents will be best off meeting now & way in advance of filing her Medicaid to meet with an elder law atty to review thier situation and move whatever needed. Atty can look at the car transfer too to perhaps give you all options as how to deal with any fallout from dad selling / gifting / transferring a 30k car to you for zero.
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Oldmanmike Jul 2018
Thanks for the quick reply. What value do states set for the vehicle? The current value or the value down the road when Medicaid is applied for?
if your dad withdrew 30k from one of his accounts medi-caid may want to know where that money went, since its such a large amount. (if it is within the 5 years.)
even if it was his car for a short time, they may wonder what happened to the car(?) and it may indeed look like he gifted the money.
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You would probably have too pay what its was worth at the time it was gifted.
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