Hi, my name is ally, and I need help.
my grandma is practically the woman who raised me, I’ve been with her since I was a baby but recently (2 years) she’s been battling Alzheimer’s.
about when we found out she had it, I was visiting her regularly and she told my aunt (who she had been living with) that she wanted to give her car to me because she couldn’t drive it. Long story short, I got the car not long after that and have had it ever since. A couple months ago she was admitted into a nursing home under medicaid without me knowing. Ive been trying to get the car into my name but I literally have no idea what to do.. keep in mind I’ve been in possession of it for two years now but just haven’t transferred it over because I honestly didn’t know that I didn’t have that much time left.. I need help. How do I get it into my name? I’ve heard Medicaid will want blue book value after she got transferred in but I’ve put so much money into this car already and it’s still in bad shape. Is there anything I can do to make it easier?
why?
well if she had gifted it to you in 2020, LTC Medicaid program would have looked at this as “gifting of an asset” & placed transfer penalty on grans LTC Medicaid application at highest Blue Book value then. Gran would not be eligible for Medicaid. NH easily 7-10K a mo who would be paying this???. Title recorded by State & easy keystrokes for Medicaid caseworker to find & place penalty. Gran would have needed to have transferred car Summer of 2017 to get beyond 5 yr Medicaid look back.
LTC Medicaid has very defined rules for income (like $ she gets every mo, like social security $) and for assets (like any savings, investments, home, land or car). Your Aunt is correct! LTC max of $2,000 nonexempt assets allowed BUT can keep home & a (1) car under a set value. When we did MIL application in NOLA ages ago, car was $15K max blue book value. Once sold, that $ now nonexempt asset.
Here’s my suggestions & opinions:
- forget about whatever $ you spent on her car. Medicaid caseworker does not give a rats butt that you spent $. You chose to spend $ on something owned by another. Medicaid - in my experience- views whatever family does or pays for their parents or elder, is done out of a sense of familial responsibility & without expectation of reimbursement. In order to ever counter that, you would need a Memo of Understanding all notarized and witnessed & done way in advance of them ever filing for Medicaid.
- do not put another penny into car. Your spending your own $ on her car only retains or increases her cars value.
- find out current Blue Book value
- if BBV is way way off, then get a mechanic to do a valuation as the mechanic can put down all issues to justify lower value.
Next part to me very interdependent on value & whatever value, it’s a cash sale so no financing by gran.
IF BELOW 2K, grans POA can easily sell it. POA would need to send letter over to caseworker w/value paperwork & info on buyer (you) & deal needs to be completed within 30 days; so need a response from Medicaid by a set date. Caseworker says fine; POA gets title transferred to you; you give POA a certified check; it’s yours.
NOW…
- POA could ask caseworker to allow transfer at zero value as keeping car has costs & is a safety / security issue. Good luck on this approach.
- once sold, POA puts certified check $ into grans bank & fine for LTC Medicaid as under 2K asset max. Car yours & all on you now for license, taxes, insurance.
An aside on insurance, its high for young drivers in LA. If u have been driving on her policy, you have benefitted. At some point in time, will be an issue. Because gran -once on LTC Medicaid - has to have almost all her mo income be a copay to NH. No $ to pay insurance. Plus insurance has to be legit w/your name placed as a driver. It’s easy to get away with this, but should there be an accident or traffic stop, will be a problem. POA really should not have been allowing someone driving it without legit auto insurance coverage. POA should be cautious what they tell caseworker.
IF OVER 2K:
more complicated. Gran limited to 2K nonexempt assets. Any $ over makes gran ineligible as not “at need” financially. POA will need to do a legit spend down of $ to get her back once again impoverished. Not simple for POA; but title in your name.
OR
POA sells it to others at BBV.
OR
Car stays in grans name & placed in storage by POA till gran dies. Executor deals w/sm estates affidavit & deals w/estate recovery attempt & hopefully car transfers freely to beneficiary as per grans will.
Please realize auto title recorded & easily found. Medicaid application requires notification to State on any change of assets; POA or Whomever signed off on her application legally responsible. LA runs periodic database cross reference on Medicaid recipients. So run whatever plan by caseworker to ensure that it’s ok. Good luck!
Here's how to get a replacement title in LA:
https://www.youtube.com/watch?v=fO37PP_qRmg