Risk It With A Quick Fix, Win It With The Right Tricks 

 

Long-term care can drain your savings faster than you ever expected. Yes, Medicaid can help— but qualifying isn’t as simple as it sounds, especially when your assets are over the state’s limit.  That’s when people start searching for quick fixes, like adding a child to a house deed or bank  account, hoping it will protect their assets and help them qualify for Medicaid later on. However,  joint ownership rarely works the way people expect. Whether it’s your home or your bank  accounts, adding your child’s name does not automatically safeguard your assets. In fact, it  often creates more problems than it solves, especially when it comes to Medicaid eligibility. Understanding how Medicaid treats jointly owned assets is essential if you’re trying to plan for  your future care and protect your savings. 

If Your Name’s Still On It, Medicaid Still Counts It 

In most cases, Medicaid does not ignore assets just because someone else’s name is on it. A  joint bank account is typically counted as fully available to you, regardless of whether your child  uses it or not. The same goes for jointly owned property. Simply adding a child to the deed  doesn’t reduce your ownership. Unless you’ve legally transferred full ownership and no longer  live in the home, the property is still considered yours. 

Medicaid considers everything you own or have legal access to as part of your financial  “bucket.” That includes savings accounts, retirement accounts, certificates of deposit (CDs),  additional vehicles, investment properties, and more. While there are some exceptions—such  as your primary residence (if you plan to return to it), one vehicle, a prepaid irrevocable funeral  contract, and up to around $1,500 in cash-value life insurance—everything else is fair game. 

Smart Spend Down Matters 

Many people are often shocked to learn just how little they’re allowed to keep. While the exact  amount depends on marital status, for a single person in New Hampshire, the limit is  approximately $2,500. To qualify for Medicaid, anything above that must be reduced. It’s no  surprise that this creates stress and confusion. But what most people don’t realize is that with  the right strategy, you may be able to preserve more than half of your savings.  

The key is how you spend down. Medicaid allows you to use funds for specific exempt purposes  like home repairs, prepaid funeral arrangements, or even creating income streams for a spouse  through a Medicaid-compliant annuity. But these strategies must comply with Medicaid rules  and only work if used before applying. Moving money without proper planning can result in penalties or even total disqualification. 

Planning Now Can Save You Later 

When it comes to Medicaid eligibility, good intentions aren’t enough. What matters is informed,  strategic planning. Whether you’re starting to think about long-term care or worried your current  plans might backfire, we’re here to help. At Cocheco Elder Law Associates, we help New  Hampshire and Maine families navigate Medicaid with confidence while protecting their assets  and future care. A conversation today could save your family time, stress, and thousands of  dollars later. Call us!