Can Medicaid take money out of a joint bank account?

Arrrggg. Just change both those accounts to the owner's name either Pay on Death to the other person. Joint accounts make both accounts totally vulnerable to a creditor of either of you.

In either case, the money in each of our accounts is not 50/50. I was trying to not have to see an attorney. I worked for them (Family Practice) for many years and would rather not involve them. We dont have millions - but enough that we dont want to give it away. We only want each other to have it as the surviving friend will need it.

Thank you. The accounts were set up this way so that neither of us would need a will. In the case of having to go into assisted living we would not have to surrender money we have worked for all of our lives to Medicare/Medicade/Assisted Living or whomever you would need to give it to. I know that if you go into Assisted Living with no assets they do take your SS and pension. That is fine. However, I do not agree that they should be able to take your lifelong savings.

Medicaid is likely to view money in joint accounts as belonging half to each. So it might be fine if the accounts are equal in size. They don’t “take” money; they just don’t pay until you meet all the criteria.

It is cleaner to set up yours/mine/ours accounts. Your income is direct deposited into your individual account and you transfer your share of household bills as needed, with a month or so worth of extra left in the account if desired.

Likewise, try to keep credit accounts organized as to which are joint, and which are individual, possibly with an authorized user. Joint are fine for rent, groceries and autopay utilities, individual for personal/medical, authorized user for the other person’s personal/medical.

If you still want to be each other’s heirs, you can use POD beneficiary designations. Estate planning advice may be useful if either has a lot of assets; consider whether POAs for finance or medical would be suitable.

You need the advice of an attorney. This co-mingling of assets is never a good idea at all. If you want this person to have your assets after death then the account should be in your name with POD (pay on death) to the other person. You have made this money her asset and yours. Usually she could walk away with ALL your money (unless there is the stipulation of "both signatures required for withdrawal). Discuss with bank or with attorney. You have set this account up so that it is her asset as she has done the same with you. This is not a good idea from the standpoint of medicaid or of anything else.

It would not be Medicaid taking the money. It would be the assisted living facility if you let them debit the checking account. Medicaid rarely pays for assisted living or memory care.