More details to this question:
my mother has a POD CD fully payable 07/2013 to her 3 children. She is in a nursing home and wants to be able to have the money given to her 3 children now beofre she dies. She will be applying for Medicaid shortly. Can the CD be distributed without penalty from Medicaid since it is specifically for the benefit of the children
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If you cash the CD and distribute the money to her children, this will cause her to be ineligible for Medicaid because Medicaid will impose a penalty. The penalty imposed will depend on the amount of money transferred. Even if the CD was for the benefit of her children it is still an available resource and would not go to her children until she died.
Answered on Apr 13th, 2013 at 5:04 PM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship