Jointly Owned Assets

A jointly owned asset is real or personal property that 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 limit.

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.

This section explains how to count jointly owned personal property. See Real Property for information on how to count jointly owned real property.

Note:  Follow the provisions provided in Calculating Home Equity when determining whether the client meets the Home Equity Limit requirement.

Jointly Owned Assets - General Provisions.

MinnesotaCare and MA Method A.

MA Method B, Medicare Savings Programs (MSP) and MA-EPD.

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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  Uniform Gift to Minors Act/Uniform Transfers to Minors Act

Exclude the full value of assets established under the Uniform Gift to Minors Act (UGMA) Former name for the Uniform Transfer to Minors. Allows an adult to contribute to a custodial account in a minor's name without having to establish a trust or name a legal guardian. The minors can have securities bought and money invested in their names, while the custodian is responsible for managing the funds in the account. The custodian has a fiduciary duty to manage the account prudently, but once the minor reaches the age of majority, he/she has complete rights to the funds in the account. The assets are the legal property of the minor, and the parent has no legal control over the uses of the proceeds of the account. The Uniform Transfers to Minors Act supersedes The Uniform Gift to Minors Act. or the Uniform Transfers to Minors Act (UTMA) An Act which allows an adult to contribute to a custodial account in a minor's name without having to establish a trust or name a legal guardian. The minors can have securities bought and money invested in their names, while the custodian is responsible for managing the funds in the account. The custodian has a fiduciary duty to manage the account prudently, but once the minor reaches the age of majority, he/she has complete rights to the funds in the account. The assets are the legal property of the minor, and the parent has no legal control over the uses of the proceeds of the account. The Uniform Transfers to Minors Act supersedes The Uniform Gift to Minors Act..  

n  An adult designated to receive, maintain and manage custodial property on behalf of a minor beneficiary is not the owner of UGMA/UTMA assets because he or she cannot legally use any of the funds for his or her support and maintenance.  

n  When the UGMA/UTMA property is transferred to the minor at the end of the custodianship (usually at the age of 21 or 18 depending on state law) the property is available. Count it as income in the month of transfer and as an asset in the following month.

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,  including checking accounts, savings accounts, certificates of deposit, savings certificates, and other time deposit accounts.

n  Bonds.

Example:

Joan and a friend own a boat together that has an equity value of $30,000. 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. Count $15,000 of the equity value toward Joan’s asset limit.

Example:

Karen applies for health care. She inherited stock in K-Mart worth $10,000 from her grandparents along with her parents and siblings. Her grandparents’ will gives half ownership of the stock 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 value ($2,500 of the value each), and each of the siblings own one quarter of the remaining 50% ($1,250 of the value each). Count $1,250 of the value of the stock toward Karen’s asset limit.

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MinnesotaCare and MA Method A

Follow the provisions listed in Jointly Owned Assets - General Provisions as well as the following for MinnesotaCare and MA Method A:

l  Accounts

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  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  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. POD beneficiaries 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.

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MA Method B, MSP and MA-EPD

Follow the provisions listed in Jointly Owned Assets - General Provisions as well as the following:

l  Accounts

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 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 named owners listed on the bond. Payable On Death (POD) beneficiaries are not owners of the bond.

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