Can Retitling Your Home Protect It from Medicaid? What You Need to Know
Retitling property—even with Power of Attorney in place—doesn’t shield it from Medicaid lien or estate recovery. Learn the risks, limitations, and why expert legal guidance is essential.
Can Retitling Your Home Protect It from Medicaid?
If you''''re co-owner of a home (e.g., JTWROS) and your partner is diagnosed with Alzheimer’s or another condition, you may wonder whether retitling the property into your sole name helps preserve it from Medicaid claims. Unfortunately, the answer is not straightforward.
- Medicaid Can Still Lay Claim:
Even if your partner depletes all assets except their one-half interest in the property, Medicaid may still place a lien on that share and be reimbursed from the sale proceeds—subject to certain adjustments.(NJMoneyHelp.com)
- Power of Attorney Limitations:
Acting under Power of Attorney requires that decisions serve the principal’s best interest—not the agent’s. Retitling solely in your name may not benefit the principal and could raise legal concerns.(NJMoneyHelp.com)
- Risk of Medicaid Estate Recovery:
Retitling may reduce control but doesn’t fully prevent Medicaid from seeking repayment from one’s estate after death. This is especially relevant if the retitled share remains part of the principal’s estate.(Nolo, Medicaid Planning Assistance)
In light of these complexities, downstream legal and financial consequences should be carefully considered.
Medicaid rules make retitling your home a risky and potentially ineffective way to protect it. To safeguard your family’s interests and navigate eligibility and recovery rules, you should retain a qualified elder-law attorney or estate-planning professional who understands your unique situation.
At Vested Land Services LLC, we’re here to help. Contact our team today for tailored guidance and support throughout this complex process.
