Can I give a car to a family member?
Short answer: Giving a car away during the look-back is a transfer that can cause a penalty, based on the car’s value, unless it goes to a spouse or another exempt person.
Figures change periodically. Double-check current amounts before relying on them.
One vehicle is generally exempt while the applicant owns it. But giving it away is a transfer, and the look-back rules apply to the car’s fair market value at the time of the gift.
- To a spouse: transfers between spouses are exempt from the penalty.
- To a child who is blind or disabled: exempt.
- To anyone else (a child, grandchild or friend): the car’s value counts as a gift. A car worth $8,000 in a state with a $9,000 monthly divisor would cause a penalty of a little under one month.
Alternatives:
- Keep the car if it is the exempt vehicle and a family member uses it to drive the applicant to appointments.
- Sell it at fair value and use the proceeds in allowed ways.
- Wait until after Medicaid is approved and the person no longer needs the car; a transfer then can still cause a penalty, but planning with the rules can help.
Keep records of the car’s value (a pricing guide printout) if you transfer or sell it.
Getting help
Every situation is different, and small facts can change the answer. If this question affects a real decision, especially with a spouse at home, a home, gifts or a trust, a Certified Medicaid Planner can apply your state’s rules to your situation. As a rough guide, published fees for help with an application range from about $500 to $6,000, and hourly help from about $150 to $600.
Related
Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.