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Effective: December 1, 2006 |
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19.15.05ar1 - Jointly Owned Assets (Archive) |
Archived: February 1, 2010 |
A jointly owned asset is real or personal property which is owned by two or more people. It is important to determine ownership of an asset in order to count the proper amount toward the client’s asset total.
In some cases, a jointly owned asset may remain fully owned by and available to the original owner even if a joint owner attempts to make the funds unavailable. See Availability of Assets.
Jointly Owned Assets - General Provisions.
MinnesotaCare, MA Method A and GHO.
Long-Term Care and Elderly Waiver.
There are different types of ownership people can have with other people.
Each owner of real property has an undivided interest in the property and is able to sell their share of the property without obtaining the permission of the other owners.
Each owner has one and the same interest and must obtain the permission of the other joint owners in order to sell their share.
Each owner has one and the same interest and must obtain the permission of the other joint owners in order to sell their share. It also provides the right of survivorship of all property of a deceased to the remaining joint tenants.
Jointly Owned Assets - General Provisions
Follow these general provisions for all health care programs when evaluating joint ownership of the following:
l Cash.
Count the total amount of cash reported for each person.
l Other Assets.
For all other assets, consider each owner to own an equal share unless the client documents a greater or lesser share of ownership.
Exceptions: See specific program requirements for:
n Accounts.
n Certificates of Deposit.
n Bonds.
n Stocks (MCRE only).
Example:
Joan and a friend own a lake cabin, with an equity value of $30,000, together. Joan is applying for health care. The worker has determined it is an available asset.
Action:
Presume that Joan owns one-half the equity value unless she documents a greater or lesser share. $15,000 of the equity value is counted toward Joan’s asset total.
Example:
Karen applies for health care. She inherited a parcel of land, with an equity value of $10,000, from her grandparents along with her parents and siblings. Her grandparents’ will gives half ownership of the land to her parents with the remaining half divided equally among Karen and her three siblings. The worker has determined it is an available asset.
Action:
Each of her parents owns 25% of the equity value ($2,500 of the equity value each), and each of the siblings own one quarter of the remaining 50% ($625 of the equity value each). $625 of the equity value of the property is counted toward Karen’s asset limit.
MinnesotaCare, MA Method A and GHO
Follow the provisions listed in Jointly Owned Assets - General Provisions as well as the following for MCRE, MA Method A and GHO:
l Accounts/Stocks/Certificates of Deposit.
Apply the following rules to bank accounts, including checking accounts, savings accounts, certificates of deposit, savings certificates, and other time deposit accounts and stocks which are jointly held:
n Exclude the full value of accounts established under the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act.
n For accounts jointly owned by a child and an adult, count one-half the value toward the adult’s asset limit.
n For accounts jointly owned by adults, consider the entire balance to belong to each owner.
Example:
Jolene and her daughter Marissa (age 17) are applying for health care. Jolene and Marissa share a checking account into which both of their paychecks are deposited.
Action:
Marissa is exempt from an asset limit because she is a child under 21. Count half of the checking account balance toward Jolene’s asset total.
Example:
Pam applies for health care. She has a joint checking account with her ex-husband.
Action:
Count the entire balance of the account toward Pam’s asset total.
l Bonds.
Apply the following rules to savings bonds:
n Exclude the full value of bonds established under the Uniform Gift to Minors Act or the Uniform Transfer to Minors.
n For bonds jointly owned by a child and an adult, count one-half the value toward the adult’s asset limit.
n For all bonds jointly owned by adults, divide the value among all owners listed, excluding those listed as Payable on Death (POD) beneficiaries, as these people are not owners of the bond.
Example:
Elizabeth (age 40) is applying for health care. She owns a bond valued at $2,000 with her brother, Clarence (age 42). She also owns a bond valued at $3,000 with her mother and father.
Action:
Count $1,000 ($2,000 / 2 adult owners) of the bond she owns with Clarence toward her asset total. Also count $1,000 ($3,000 / 3 adult owners) of the bond she owns with her parents.
Follow the provisions listed in Jointly Owned Assets - General Provisions as well as the following for MA Method B, except MA-EPD, and GAMC:
l Accounts/Certificates of Deposit.
Apply the following rules to bank accounts, including checking accounts, savings accounts, certificates of deposit, savings certificates, and other time deposit accounts which are jointly held:
n If the joint owners are applicants/enrollees for MA, GAMC or MCRE, even if not in the household, presume ownership of equal shares.
n If the joint owner is a responsible relative whose assets are deemed available, presume ownership of equal shares. See Deeming.
n If joint owners do not meet the above two criteria, then count the entire balance/value for each adult.
n For MA-EPD only: Exclude spouse’s share of the account and/or certificate of deposit.
Example:
Max and Louise are a married couple living in a long-term care facility. They both apply for health care. They have a joint savings account with a balance of $8,000.
Action:
Count one-half the balance ($4,000 each) toward each of their asset totals.
l Bonds.
Divide the value of the jointly owned bond among all owners listed on the bond, who are not listed as Payable On Death (POD) beneficiaries, as these people are not owners of the bond.
Follow the provisions listed in Jointly Owned Assets - General Provisions and MA Method B and GAMC.
Exception: Follow the provisions provided in Calculating Home Equity when determining whether the client meets the Home Equity Limit requirement.