(Warning: Typos Intact, Not Legal Advice)

What are the ramifications of titling a car “and/or” in the state of Florida?

My elderly father is moving to Florida to move in with me due to his declining health. He no longer drives but I plan on using his car (2013 Honda) for all of his needs… (transportation to all appointments, therapy, grocery runs, etc.) It is possible that in the future he will need to go on Medicaid after all of his assets are used. Is there a problem with titling the car “and/or” in my name with regard to spending down for Medicaid? I did not want to buy the car from him for fair market value as that would be money in his account to spend down. He can’t gift it to me because of the 5 year look back. Does “and/or” help us in any way? Will I incur a tax hit from this? One insurance agent told me car insurance may be less expensive for me if my name is on the title as well.

Answer: Titling the car in your name is not advisable because it could make you liable for any accidents your father might be involved in. Additionally, doing so would be considered a divestment for Medicaid purposes, resulting in a penalty period for your father. Therefore, it’s best to keep the car in your dad’s name. After his passing, you can inherit the car without going through probate by visiting the Secretary of State’s office.

In most states, you can contact the insurance company to add yourself as an additional driver on the policy if you will be driving the car. Adding yourself as an additional driver may lower the insurance rates. In fact, we have encountered many situations where removing an elderly parent from the insurance policy and having a family member as the sole driver resulted in lower premiums and reduced risks.