Elderwerks Senior Resource Directory 2025/2026

SHOULD I BE ON MY PARENTS' BANK ACCOUNTS

SHOULD I BE ON MY PARENT’S BANK ACCOUNTS?

Jennifer Prell is President and Founder of Elderwerks Educational Services, a not-for-profit 501(c)3 organization offering complimentary information, referrals and guidance to older adults, seniors and their families for senior living, care, support and benefits. Visit Elderwerks.org or call (855) 462-0100 for personal assistance.

Medicaid views any account in joint tenancy as owned by the person applying for Medicaid and they will require that money be used for care or reimbursement to CMS (Centers for Medicare and Medicaid). Careful consideration must be given to anyone granted Power of Attorney. You are giving someone the ability to do any transaction you could do yourself. We do not recommend adding a professional caregiver to any account. Co-owners of real estate presents a variety of challenges. Let’s say mom needs to move into a skilled nursing facility for long-term care. She will need to pay privately if funds are available. If her only asset is the house and she is applying for Medicaid, you may have to move out and lose your investment in the house. She is considered the primary owner and CMS want the asset used to repay Medicaid when the home is finally sold. We suggest you consult with an attorney to ensure that all accounts or real estate ownership coordinates with the overall estate plan. If you have questions about Medicaid planning, please reach out to Elderwerks.

It’s a good idea for the Power of Attorney for Property (POA) to be listed on accounts as the POA. This helps when someone is incapacitated and cannot manage their finances alone or has a short-term disability needing some assistance. member, the actual titling is extremely important and can have unintended consequences if not coordinated with the estate plan of the parent. Power of Attorney documents are valuable tools to have in place, as they provide access to accounts in the event of sudden incapacitation. There are pitfalls in joint ownership of a financial account or even more so real estate. Let’s say that you are listed on your mom’s bank accounts and you get sued. The person suing you can take the money from these accounts. More importantly, if something happens to mom, you now own those accounts no matter what the distribution plan under the terms of the Will might be. While it is a good idea to provide account access to a trusted family

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