Quick Summary

If someone owns non-homestead real estate as joint tenants with rights of survivorship (JTWROS) and the other owner refuses to sell, that property interest is often considered unavailable — and therefore not a countable Medicaid asset.

However, in real-world Medicaid applications, the Michigan Department of Health and Human Services (MDHHS) sometimes treats these properties as countable assets anyway, even when federal rules suggest they should not be.

That difference between what the law says and how eligibility decisions are sometimes made can create serious problems for families applying for long-term care Medicaid.

The Situation

Imagine a Medicaid applicant who owns a home in Southeast Michigan and also co-owns inherited property “up north” with a sibling. The up north property is owned as joint tenants with rights of survivorship, and the sibling refuses to sell.

Under Michigan Medicaid policy, an asset generally must be available to be counted.
“Available” means the person has the legal ability to sell, use, or convert the asset to cash.

But with JTWROS property, no owner can sell without the consent of all owners. If a co-owner refuses to sell, the applicant cannot access the value of the property.

Under standard Medicaid and SSI resource rules, that typically means the ownership interest is not a countable asset.

Where the Problem Happens

Even though policy guidance recognizes this “unavailable asset” concept, MDHHS sometimes evaluates these cases differently in practice.

In some eligibility determinations, MDHHS applies an “undue hardship” test used for jointly owned property that is otherwise countable. That test focuses on whether a co-owner lives in the property and would be forced to move if it were sold.

The problem is this:
That hardship analysis only applies after property is determined to be a countable resource — not when the property is legally unavailable in the first place.

When a co-owner refuses to sell JTWROS property, the applicant often does not have a transferable ownership interest, meaning the property should not be treated as a resource at all.

Still, these cases can become complicated because Medicaid eligibility workers may interpret policy differently than federal SSI-based methodology requires.

Why This Matters

Medicaid eligibility decisions often depend on whether an asset is available, not simply whether it exists.

Jointly owned property — especially inherited family property — can create confusion during Medicaid applications. When policy is misunderstood or applied inconsistently, applicants may be told they must spend down assets they legally cannot access.

That can delay eligibility, create unnecessary stress, and sometimes require advocacy or clarification to resolve.

Simple Lesson

Joint ownership does not always mean joint control.
If you cannot legally sell property you co-own, it may not count for Medicaid — but you may still need to prove it.

Action Step

If you or a family member owns inherited property, vacation property, or other real estate with siblings or relatives, review how that ownership is structured before applying for Medicaid. Small legal details can make a big difference.

If you’d like to talk through a Medicaid planning question, you can call us at (517) 548-7400 or reach out here:
https://michiganestateplans.com/contact-us/