Yes…. BUT Before worrying about Medicaid, I’d suggest that you first very carefully look at the loan agreement on the car. On securitized loans - like for a home (mortgage) or vehicle (note) - usually they have to be paid in full in order for it to be sold with title transferred to another person OR even to add another name onto the title. Find out if it’s even possible for him to transfer the paperwork for ownership without getting the loan paid in full.
If this is about his not being able to afford the payments, & if he bought it new & recently- like since Covid - I’d ask dealership if they will buy it back, close out the loan with no penalty or fees done. There’s a premium on new used cars right now as a shortage on new cars. Normally dealerships are not apt to be all nice on early vehicle turn in’s, but it’s odd time for them.
On Medicaid, his selling anything “real property” (house, land, auto) at under its FMV aka fair market value can trigger a transfer penalty inquiry. Real property info will all be in city / county & state database so it will show up when the Medicaid caseworker runs a name & SS# check against the database.
So say Dad bought a 2019 Nissan 38k & tomorrow he was to be able to somehow “sell” it for the balance of 20k on the loan and title transfer it to you… that would be a gifting of 18k. Medicaid does not allow “gifting”. He’d have a 18k transfer penalty attached to his LTC Medicaid application if he applied for LTC Medicaid anytime before Sept 2026 (5 year lookback). BUT 18k is maybe 2 months of NH private pay ((that you would need to pay as he has to be impoverished (or about to be) w 2k max in assets to be able to apply for LTC Medicaid)) …. It might be worth the transfer penalty risk IF he is not looking at needing a NH in the near future and that there’s a good chance he’s good till 2026. But if he’s needing a NH soon, & needs to apply for LTC Medicaid to pay for his room&board & like it’s imminent, personally I would not do it as the transfer will surface eventually & be a problem.
You need to talk to Medicaid concerning this. Any money u will receive will effect his Medicaid. He can't go over the cap set. The proceeds can be used to buy a prepaid funeral.
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If this is about his not being able to afford the payments, & if he bought it new & recently- like since Covid - I’d ask dealership if they will buy it back, close out the loan with no penalty or fees done. There’s a premium on new used cars right now as a shortage on new cars. Normally dealerships are not apt to be all nice on early vehicle turn in’s, but it’s odd time for them.
On Medicaid, his selling anything “real property” (house, land, auto) at under its FMV aka fair market value can trigger a transfer penalty inquiry. Real property info will all be in city / county & state database so it will show up when the Medicaid caseworker runs a name & SS# check against the database.
So say Dad bought a 2019 Nissan 38k & tomorrow he was to be able to somehow “sell” it for the balance of 20k on the loan and title transfer it to you… that would be a gifting of 18k. Medicaid does not allow “gifting”. He’d have a 18k transfer penalty attached to his LTC Medicaid application if he applied for LTC Medicaid anytime before Sept 2026 (5 year lookback). BUT 18k is maybe 2 months of NH private pay ((that you would need to pay as he has to be impoverished (or about to be) w 2k max in assets to be able to apply for LTC Medicaid)) …. It might be worth the transfer penalty risk IF he is not looking at needing a NH in the near future and that there’s a good chance he’s good till 2026. But if he’s needing a NH soon, & needs to apply for LTC Medicaid to pay for his room&board & like it’s imminent, personally I would not do it as the transfer will surface eventually & be a problem.
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