Methods of Holding Account(s) of Medicaid Recipient

A common question is the form in which an account or accounts should be held in the name of a Medicaid recipient so as not to endanger Medicaid eligibility. I am providing the following list of preference in reverse order for your consideration:

1. Usually, individuals without the advice of counsel, have a joint account with the applicant and the spouse in which is placed the social security/pension of the applicant and the spouse. Such a procedure would result in being denied Medicaid or loss of eligibility. That is, Medicaid will treat the account as being completely the resource of the applicant and also completely the resource of the community spouse regardless of the source of funds.

2. An account may be held jointly with a child. Such a technique is okay, but you must make it clear that none of the child’s assets be placed into the account. Also, any withdrawal of funds by the child would be treated as a Medicaid gift and result in temporary ineligibility.

3. The best method for holding an account would be the child on behalf of the parent under a power of attorney. A separate account could be maintained for social security payments with the child designated as representative payee. Post 1 discusses this and related issues in greater detail.

4. Post 1 also indicates that under certain circumstances, the nursing home can be representative payee of the social security payments (read Post 1 carefully). Payments from qualified plans cannot be assigned due to restrictions under the Internal Revenue Code.


Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© June 2009, Post 93