Mother is 81 and was put in a nursing home. She bought a car in her name only a year ago for me. I have made all the payments etc. on it. Since she is now in a nursing home we must get this out of her name. It is upside down so I cannot get a loan for it. If we let it default and be repossessed, can they get anything from her? She has a 1987 ? trailer and contents and that is all and we have to liquidate those also so she can get medicare/medicaid.
Country relating to Question: United States
State (if USA): Ohio
Getting a loan to get the car in my name and I cannot get one because there is more owed than it is worth.
Good morning. If you let it go and the lender repossesses it, no one else has any personal liability for it. Iowa has an unlimited homestead exemption which will protect the trailer and the lender will have no interest in the contents. Plus, if she needs nursing care, the government claim will take precedent over the car lender.
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Answer mentions Iowa law and I am in Ohio. Does this make a difference?
I'm so sorry...I misread the state. In Ohio, the homestead exemption is $21,625. But, given the age of the trailer, it is still likely to be within this exemption amount and beyond the reach of the car lender.
29 Years Practicing Law - Including Tax and Estate Planning
How do we handle it with Medicare/medicaid to show she does not have the car anymore? Do we contact the Lein holder and tell them to pick it up and get proof that they have it in their possession or just let the lein go defualt and let them come and get it but to qualify for aid, they need that title out of her name. In other words what proof do we need that when they get the car that she does not have it anymore?
With medicaid, you can simply show them there is no equity in the car because of the loan secured by the car. They have no interest in any asset with no value. You can simply stop making the payments and let them know that the lender is going to repossess it.
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