08 Aug Can I retitle a home to protect it from Medicaid?

Q. I am one of two unmarried co-owners, JTWROS, and the partner has an Alzheimer’s diagnosis from October 2023. At present, he is relatively but possibly entering the moderate stage. I have obtained all necessary powers of attorney but I’ve been completely unable to locate a senior law attorney or anyone else to advise on the question of retitling. The other owner should have adequate funds to cover several years of care. The apartment is owned free and clear but has rather steep taxes and condo fees. Would retitling protect me and my right to leave the property to my daughter eventually? I assume we could still share all expenses equally as we have been? Can we simply use a real estate lawyer to retitle?
— Unsure

A. There’s a lot to unpack here.

We appreciate that you want to do it right.

There are many competent elder law attorneys who can counsel clients in Medicaid planning, said Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park. 

But timing here is important.

“Such planning should be done well in advance of the need to apply for Medicaid because there is a five-year look back at the time of the application and any transfers during that period will result in a denial of Medicaid or a penalty period — a period of months where Medicaid benefits are not allowed,” she said.

A transfer of assets during life as a gift, versus at death, also may have different income tax consequences to the recipient, Romania said.

Additionally, unless you and your partner are registered as “domestic partners,” a transfer at death or in contemplation of death will trigger an inheritance tax, Romania said.

“As an agent appointed under a Power of Attorney, your directive is to act in a manner that benefits the principal — the person who gave you the Power of Attorney — and not in a manner that benefits you as the agent,” she said. “It is not clear how retitling the home in your name will benefit the principal.”

Should your partner deplete all of his assets other than his one-half interest in the home, he may apply for, and if all other factors are met, likely receive Medicaid as he would not be able to liquidate the home while you are living there, Romania said.

“However, Medicaid would be able to place a lien on his share of the home for benefits provided,” she said. “Once the home is sold, Medicaid would be reimbursed up to one half the proceeds, subject to certain adjustments.”

It seems you should sit down with an estate planning attorney who can look at all the particulars in both of your situations so you can make sure not to run afoul of Medicaid rules and advise on what a change of title could mean.

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This story was originally published in August 2025.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.