Medicaid Policy
Medicaid Policy
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Sometimes an individual may have accounts with someone else’s name on them, too. The individual may, or may not, own all of the funds in a joint account. Follow these rules for any accounts held by the individual and someone whose income and assets are not counted to determine the individual's eligibility.
These rules apply to all checking and savings accounts, certificates of deposit, share accounts, etc.
1. Count all the funds as an asset for the individual if he can legally withdraw funds from the account. If more than one of the account holders is eligible for Medicaid, divide the funds equally among them.
A. If the account is a joint account between spouses, the funds are considered equally available to both spouses.
B. When the account is a joint account between a minor child and the parent, the account is available to the parent unless there is a formal arrangement showing that the parent is the representative payee for the child's benefits (like SSI). If the parent is a legal guardian or conservator of funds being protected for the child, request the paperwork showing this arrangement to determine how the funds can be used. Contact a Program Specialist if you have questions about availability of the funds.
2. Allow the individual to refute availability of the asset if he claims that only a portion or none of the funds belong to him. He can refute it by providing the following evidence under penalty of perjury:
A. His statement about the ownership of the funds. The statement should include the reason the joint account was set up, proof of who made the deposits to and withdrawals from the account, and how withdrawals have been made.
B. Supporting statements from the other account holders.
C. Account records and other documentation supporting the above statements and showing ownership of funds deposited, withdrawals and how the funds were used, and interest in the months for which ownership is at issue; AND
D. Evidence showing that he/she can no longer withdraw funds from the account, if the individual owns none of the funds; OR if the individual owns only a portion of the funds, evidence showing removal from the account of such funds, or removal of the funds owned by the other account holder(s), and the re-designation of the account. If the individual says he has an arrangement to manage the funds for the other person, see #5 below.
3. If the funds belong to someone else, the money must be removed or access must be restricted. If this is not done, count the funds as an asset for the entire time access was not restricted. If access is restricted, do not count the funds back through the entire period the individual is able to refute his ownership.
4. When the assets of an Aged, Blind and Disabled Medicaid SSI recipient are combined with those of an Family Medically Needy unit, such as in a savings account, decide the portion of the asset available to the Family Medically Needy household as follows:
A. If the asset is jointly owned, divide the value equally among the owners.
B. If you can identify exempt funds, such as a lump sum SSI payment that is exempt for 9 months after receipt, do not count those funds until after the exempt period has expired.
5. If the individual is the representative payee, legal guardian/conservator, or a trustee for someone else, the account must show that relationship on the account name or signature cards. If the joint account shows that the individual is the representative payee, guardian or conservator for the other person, then do not count the funds in the account as a resource to the individual. (See Sec. 413-5; also 511-2.)
If the account does not show this type of relationship, but the individual says that he is just the payee, the account must be modified to show the payee relationship, or the individual’s name removed from the account. If the individual does not verify that the account has been modified to show the representative payee relationship, or the individual’s name is not removed from the account, the funds count as a resource to the individual. See Sec 511-2 for resource policy.
6. If the individual is a trustee, request a copy of the trust agreement. Follow trust policy found in 417-2 and 512 to determine if income or assets of a trust are available to a trustee.
7. Gifted or Transferred Assets held in a Joint Account
Adding another person's name to an account does not mean that the other account holder owns a portion of the funds. However, if the individual claims that all or a portion of the account funds were gifted or transferred to the other account holder, look for convincing evidence that a gift or transfer was actually made. The burden of proof is on the individual to provide evidence that shows a gift or transfer was made, to whom it was made, when it was made, and how much was gifted or transferred.
An example of acceptable evidence would be a written, notarized statement made at the time of transfer showing a clear intent to gift or transfer the funds and how much was transferred. Contact the Program Specialist if you are unable to determine if evidence provided is acceptable. (Note: Oral reports from the individual or a family member or a statement written after the fact, is not acceptable evidence that the individual intended to make a gift or transfer at some earlier date. A written statement made after the fact may provide evidence that the individual made a gift at the time such statement was written.)
If evidence exists proving a gift or transfer was made, the eligibility worker needs to determine what portion of the current balance belongs to the individual and what portion belongs to the other account holder. The individual must provide an accounting to the worker showing transactions made since the transfer to prove what portion of the gifted or transferred funds remain in the account.
Exclude the amount of the current balance that the individual is able to show was gifted or transferred to the other person. The funds must then be separated so that the individual no longer has access to the amount that has been excluded.