What estate assets are used to pay back to Medicaid?
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What estate assets are used to pay back to Medicaid?
My sister in going to be sent to a nursing home. Her only cash asset is a CD, in another state, she a made POD to her children. She has become physically and mentally incapable of acquiring and cashing this CD to help pay for it. I understand she can apply for Medicaid which will pay for the nursing homebut that when she dies, Medicaid will have to be paid back out of her estate. She has named me her executor, and I need to know what the disposition of this CD will be when she dies. Does it go automatically to her children since it is POD or does Medicaid have first claim on the money?
Asked on September 26, 2011 under Estate Planning, Oklahoma
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If your sister's only cash aset is a certificate of deposit payable upon her death to her children (presumably a joint tenancy account) this certificate of deposit would not be an asset of her estate as a matter of law in that joint tenancy assets are not included in one's estate.
Since this certificate of deposit is held in joint tenancy (presumably) between your sister and her children, Medicaid will not be able to claim it since this bank account will not be an asset of your sister's estate. This certificate of deposit will go automatically to your sister's children who end up surviving her upon your sister's passing. It is important that the person representing your sister's estate does not include it as an asset.
Good question.
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