Joint bank accounts can simplify money management, but they may cause issues when you apply for Medicaid. If you’re seeking long-term care benefits in New Jersey, you need to understand how Medicaid views shared accounts. Misunderstanding the rules could cost you your eligibility.
Medicaid doesn’t automatically split joint accounts. Instead, it assumes that you own the entire balance unless you prove otherwise.
Medicaid counts joint accounts as your full assets
Medicaid evaluates every financial account that includes your name. If you share a joint account with someone, like a parent or adult child, Medicaid will treat the entire amount as your personal asset. Even if you didn’t deposit the funds, the account can raise your asset total and prevent you from qualifying.
You need to address this before you submit your application.
Clear documentation makes a difference
To challenge Medicaid’s assumption, you must provide strong evidence. Show detailed records of deposits, withdrawals, and who used the money. Submit account statements and written explanations that identify the true owner of the funds.
Without documentation, Medicaid will credit the full account balance to you. That decision could affect your eligibility or delay your approval.
Removing your name doesn’t erase the past
Taking your name off a joint account won’t fix the problem if it happened within the five-year look-back period. Medicaid will still review your financial history and flag any transfers or account changes that suggest you tried to hide assets. Even if you no longer appear on the account, the agency can still count those funds against you.
Look closely at every joint account where your name appears. Collect records that prove who owns the money and when the account changed. The earlier you organize your financial activity, the more likely you can avoid delays and meet Medicaid’s strict asset requirements.