Question:
I recently was added to a relative’s mutual fund account as a co-owner. If I were to file for bankruptcy and lost the account, could Medicaid seek a penalty against these funds if my relative entered a nursing home within five years after the judgement?
Response:
While it’s impossible to predict with certainty what any Medicaid agency may do, the bankruptcy should not affect your relative’s Medicaid eligibility because it would be totally out of their hands. However, adding your name to the account in the first place would be considered a transfer, making your relative ineligible for Medicaid coverage for a period of time if they were to apply for Medicaid within five years of adding your name to the account.
