Can You Add Someone to Your House Deed on Medicaid in NJ?

Question from mark, Can You Add Someone to Your House Deed on Medicaid in NJ?

Answer from AI:

When you’re on Medicaid in New Jersey, adding someone to the deed of your house can have significant legal and financial implications. It’s important to understand how this decision can affect your Medicaid eligibility and what might happen to your property after your death.

Adding Someone to Your House Deed While on Medicaid

Medicaid is a need-based program, and eligibility is determined by your income and assets. When you add someone to the deed of your house, you are essentially transferring part of your asset to another person, which can be seen as a transfer of assets for less than fair market value. Here’s how this could impact you:

• Medicaid Eligibility: The transfer might be scrutinized under Medicaid’s look-back period, which is 60 months in New Jersey. If the transfer is considered inappropriate, it could lead to a penalty period during which you are ineligible for Medicaid benefits.
• Legal Advice: Because of these potential penalties, it’s crucial to consult with a legal professional who specializes in Medicaid planning before making any changes to the deed of your property.

Medicaid Estate Recovery and Joint Tenancy

Regarding what happens to your house after your death if it is in joint tenancy with right of survivorship, it’s important to understand the concept of Medicaid Estate Recovery. Under federal and state law, Medicaid can seek reimbursement from the estate of a deceased beneficiary for the costs of care and services received.

• Joint Tenancy with Right of Survivorship: This form of property ownership means that when one owner dies, the property automatically passes to the surviving owner(s) without going through probate. In many cases, this can protect the property from being claimed by Medicaid estate recovery.
• State Specifics: However, the rules can vary significantly by state, and there have been instances where states have attempted to recover from properties held in joint tenancy. It’s advisable to review New Jersey’s specific regulations and recent case law.

Steps to Take

1. Consult a Medicaid Planning Attorney: Before making any decisions, speak with an attorney who understands Medicaid rules in New Jersey. This is crucial for protecting your assets and ensuring your actions do not adversely affect your Medicaid eligibility.
2. Consider Other Options: Discuss other estate planning tools like trusts, which might offer a better way to manage your property according to your wishes without jeopardizing your Medicaid benefits.
3. Understand the Implications: Fully understand the implications of adding someone to your deed, not just for Medicaid eligibility but also for your overall estate planning goals.

Conclusion

Adding someone to the deed of your house while on Medicaid and understanding the implications for Medicaid estate recovery are complex issues that require careful consideration and professional advice. Consult with a qualified elder law attorney to explore your options and make informed decisions.

Remember, each situation is unique, so personalized legal advice is crucial to navigate these decisions effectively.