Medicaid and the "Joint Account Myth"

Whenever I have a Medicaid consultation it seems that I spend a great deal of time dispelling "Medicaid Myths," and the one about joint accounts is a pretty popular one.

The myth is that if someone is applying for Medicaid and they have a joint account with someone then only 50% of the account will be counted as an asset of the Medicaid applicant.  Intuitively, this makes a lot of sense.  If there are two owners then the account should be considered as being owned 50/50 between the two owners.  Simple.

"Not so fast," says the State of Connecticut.  When an applicant has a joint account, the State automatically presumes that the account is 100% owned by the applicant.  Even if there are a dozen other names on the account, the State will add the entire account to the list of the applicant's assets for Medicaid eligibility purposes.

And the State has good reason for doing this.  Why?  Because 9.5 times out of 10, the account is completely comprised of the applicant's funds and another name is added to the account simply to help the applicant manage the account, write checks, etc.  In other words, in most cases the added person has contributed no funds to the account whatsoever.

Of course, if you can successfully prove with bank documentation that the other joint owner has contributed funds to the account then the State will treat the account differently.  Otherwise, the entire account belongs to the applicant as far as the State's concerned.

Comments

[Joan Majeski]

I am a lawyer in Canada and I take it that you are a lawyer in Connecticut. I have run into a difficulty with respect to the administration of an estate in Canada where the deceased held a joint account with her daughter in Connecticut. I am aware of the usual 'survivorship' character of joint accounts but our courts have held that in the situation where the joint account is held with someone other than a spouse ( ie. parent and child) there is a presumption that the asset belongs to the estate unless the child can show that there was an intention that the right of survivorship was specifically intended. I am wondering if your courts have made a similar finding. I agree that in most instances the joint account is set up as a matter of convenience. Your comments would be appreciated.

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