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Can I Transfer Assets Using a Joint Tenancy Deed?
If my daughter pays me for 1% of the value of my property and I make a deed as joint tenant with her -- me as 99% owner and her as 1% owner -- would Medicaid consider that a transfer? Would the property be protected that way?
No, that would not be considered a transfer for Medicaid purposes if your daughter pays fair market value. A bigger question, however, is whether you can make a gift of a 1% joint interest. Traditionally, joint owners must share in the entirety of the property, meaning your daughter would have to pay for half the value of the property. You can always transfer a 1% interest to your daughter as a tenant in common, but that would still subject 99% of the value of the house to probate and to a Medicaid claim for reimbursement upon your death. Whether you can avoid this through a joint ownership as you suggest depends on your state's laws.
For more on Medicaid's asset transfer rules, click here.
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