Review of Inaccessible Resources

Inaccessible resources are treated as excludable resources for Medicaid eligibility purposes (N.J.A.C. 10:71-4.4(b)6).

The theory is that a countable resource is only such that can be converted to monies to pay nursing home costs.

Post 35 discusses in detail that a co-owner of real estate renders the real estate inaccessible if the co-owner (not the applicant) refuses to liquidate. For example, real estate owned with a sibling is an inaccessible resource if the sibling refuses to sell the property. It is not as wonderful as it seems, since one half the net income of the property (not considering paper deductions such as depreciation) is income and must be used to defray Medicaid's costs.

Therefore, although the property is excludable, Medicaid recipient does not inure to the benefit of the income.

Moreover, if the property is a joint tenancy, it will not be subject to the lien until the sibling dies and moves out. However, if the property is a tenancy in common, on the death of the Medicaid recipient, one half of the property allocable to the Medicaid recipient passes to a family member who resided in the home with the Medicaid recipient, according to the will. In such case, the lien will apply when the family member moves out or dies. The difference between a tenancy in common and a joint tenancy is that if the property does not pass to a family member, it will be subject to the lien upon the Medicaid recipient's death.


Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.

© July 2012, Post 206