Cormac McEnery Asset Protection Law Blog on Lawyers.com

Be Aware of the Dangers of Joint accounts

Monday, June 1, 2009 by Cormac McEnery

Many people believe that joint accounts are a good way to avoid probate and
transfer money to loved ones, and such accounts are sometimes referred to as "the
common person's estate plan." But while joint accounts can be useful in certain
circumstances, they can have dire consequences if not used properly. Adding a loved one to a bank account can affect Medicaid planning as well as expose your account to the loved one's creditors. 
When a person applies for Medicaid long-term care coverage, the state looks at the
applicant's assets to see if the applicant qualifies for assistance. While a joint
account may have two names on it, most states assume the applicant owns the
entire amount in the account regardless of who contributed money to the account. If
your name is on a joint account and you enter a nursing home, the state will assume
the assets in the account belong to you unless you can prove that you did not
contribute to it.
In addition, if you are a joint owner of a bank account and you or the other owner
transfers assets out of the account, this can be considered an improper transfer of
assets for Medicaid purposes. This means that either one of you could be ineligible
for Medicaid for a period of time, depending on the amount of money in the account.
The same thing happens if a joint owner is removed from a bank account. Read the remaining article by visiting Cormac McEnery Law Firm's website or click here.
For more information on NYC elder law, NYC Medicaid planning, NYC estate planning and to set up a free consultation contact NYC estate planning lawyer at 1-888-368-4329.
Posted at 15:28 PM
Topic: Asset Protection
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