reference ‘payable on death’ investments, bank accounts, etc.
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reference ‘payable on death’ investments, bank accounts, etc.
if I had to go into a nursing home for some reason, can those accounts be exempt from attachment, or be forced to be used for care ? the accounts are in my name, but are payable on death to my heirs. and/or can they be structured in such a way that a nursing home or gov’t agency cannot attach or use them for the cost of care ?
Asked on April 30, 2018 under Estate Planning, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
No, unfortunately, you cannot TOD or POD to either prevent the money from being used for your care or to put it outside the reach of nursing home or state. The law specifically allows any transfer or encumberance of the assets, or any instructions as to their disposition after death, to be overruled and/or reversed, if such was done at any time within 5 years of your going into the nursing home up through your passing or death, other than an arms-length, fair-market value sale or similar transaction (in which case the proceeds of the sale become available for your care). As you can imagine, this was done speciflcally to prevent people who have assets from transferring them to friends or family and forcing the tax payers to pay for their care.
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