An attorney friend called me for help. He was trying to assist a widow in proving that the house she and her husband bought was still hers. She said a realtor had told her not to put her name on the deed because she would lose her Medi-Cal benefits. I reminded him that Medi-Cal looks at the assets of both spouses, and (before this year when they eliminated the asset test) they would have found out that the husband owned two homes and disqualified them.
She thought she could hide the fact that she owned the home by not putting her name on the deed. Not true. You can’t hide assets. People often think that by removing their name from property or bank accounts, they can “hide” their money. Creditors are aware of this tactic and they always find out. In the best-case scenario, the person who has their name on the property returns it when the creditor demands payment. In the worst-case scenario, they keep it, and you’re left without the money, having committed fraud, with the consequences ranging from still having to pay the debt to possibly facing jail time.
It turns out my friend’s client only thought she was on Medi-Cal (she had actually been denied but didn’t understand the letter they sent her). Now, her husband—whose name was on the property—has passed away, and her stepdaughter is claiming it was his property, which means she should get two-thirds of it under intestate rules. I hope my friend wins the trial, but the bad advice could cost this widow well over $600,000.
If you want to protect your assets from creditors or qualify for Medi-Cal, give me a call. I can legally and ethically protect your assets while ensuring you don’t lose them by trying to hide them. Taking your name off and putting someone else’s name on gives them the asset—you don’t need to do that. There’s a better way. Just give me a call.
