POA transferring parent’s car ownership to another person?

We had glitches w my moms old car being transferred to a nephew. Mom moved from her home into IL that had a driver service & scheduled shopping trips so no car needed anymore. She sold it to him for $100, did proper paperwork as per State DOT rules (like I took off license plate). Mom was private pay at the IL and Medicaid was not at all on the horizon for her at the time.

The car was older and had a Blue Book value that was NOT accurate for its condition. It had been in an accident, yada yada. The kind of car you had to call AAA to get it moved. Nevertheless nephew wanted it & actively asked for it. Then abt 4 yrs later mom goes into a NH & applies for Medicaid. The auto transfer red flags her application. I was able to get her old mechanic to do a valuation in detail on it to show why it’s Blue book was completely off as mom kept all receipts thankfully. The $ difference was way under the 2k in assets allowed for individual LTC Medicaid application so basically was a wash for Medicaid. Not an issue as there was verifiable documentation as to valuation.

In talking with moms caseworker on this small drama, he told me that we were lucky that what happened for my mom turned out ok but that what often happened would be that the car would be donated to a charity and they would actually get a highest value tax write off and that actually is problematic should Medicaid get applied for years later. It’s gifting of an asset. FUN!
It was something that never ever would have occurred to me to be something that would bite mom in the butt for being charitable. It kinda needs to get sold as close to its accurate Blue book value is my suggestion.

Thanks for the helpful info!

I wish things weren’t so complicated, geez...really appreciate the head’s up

What the wording in the POA states can make a difference in what you can do with the car. If money is possibly going to be needed to care for your mom, you may have to sell the car for a reasonable price. Funds would then be put in an account for your moms use.
Does this car have any value?
Is your mom able to authorize the transfer the title to the cousin? If mom is competent enough she could just transfer it in most cases, checking with an elder law attorney would be best. Many offer a free consultation. If you can find a CELA (certified elder law attorney) you may be better off, but a elder law attorney should be able to help.
BEST wishes.

Good news that he won't be driving.

What is the value of the car?

A $500 car may be overlooked. A $5,000 car may be a Medicaid lookback issue.

PS: all I did was sign the pink slip as "DPOA" and also gave them a copy of the POA in case DMV needed it. I also got a receipt from them AND I also reported it online with the mileage etc. Since it was within the family, there was no sales tax or other issues for the grandchild to register it (This was in California)

My POA required that 2 doctors say that dad couldn't use an asset before I could sell it. Once they determined he couldn't drive I could do whatever with it. In the end, I convinced dad that one of his grandkids needed it and he gifted it to her. (not my kid, my sister's kid). Everyone was much relieved that the car was now nowhere that he could access it. We are not concerned about Medicaid and gifting rules because dad has enough assets and income that I can't imagine he would qualify.

The problem will be if Mom needs Medicaid within the next 5 years. If car worth a lot could be considered as a gift.

Giving away a car can be considered gifting as a car is part of the estate. I would be very careful here. A call to an elder law attorney about how to do this. A sale would be appropriate with transfer of car title. Call the CDMV for questions. Also read the POA document carefully to see about doing this. Not as easy as you might think. But you don't want to make the mistake of having "gifted a car" and it says RIGHT ON THE title transfer "Is this a gift". Just take care and check this out with a professional or don't do it.