f you receive proceeds from a lawsuit, inheritance or gift, without proper planning Medicaid will terminate your benefits. You'll lose your Supplemental Security Income from the Social Security Administration for the same reason. You won't get them back until almost all of the money is dissipated. For many, this is very destabilizing.
For Supplemental Security Income, you must have little or no income to qualify, and less than $2,000 in assets if you're single. For Medicaid, a single individual can have no more than $787 in income in 2011, and only $13,800 or less in assets to be eligible.
This means that money that could have been devoted to a lifelong improvement of your finances now ends up being quickly exhausted. You have to pay expenses Medicaid used to cover, as well as losing Supplemental Security Income you'd otherwise have.
I hope this answers your question. please let me know if you need more information. I will be more than happy to help.
Attorneys at Lamson & Cutner have successfully used the following time-tested strategy to protect income and financial assets for many disabled clients. Here's how it works: Security Income benefits. [IMAGE][SRC][/SRC][ALT][/ALT][WIDTH]66.53992395437263[/WIDTH][HEIGHT]100[/HEIGHT][STYLE][/STYLE][/IMAGE]These are referred to
as "pay back" trusts, meaning that after you pass on, whatever is left over in the trust is first used to reimburse Medicaid. You might also hear it referred to as a Self Settled Trust.
If you're over 65, other special protective trusts can be used, depending on your unique circumstances. These can also deliver excellent results.
If you are to receive money through an inheritance or a gift, a variation of the strategy works even better. The person who wants to provide money for you sets up a "third party" Supplemental Needs Trust to receive and secure the funds from New York Medicaid eligibility requirements, and Social Security regulations. This averts the difficulty of the money going to you directly, causing you to lose your benefits. In this scenario, your age does not matter, and there is no "pay back" provision.
Another advantage of the third party Supplemental Needs Trust is that a person who may wish to give you money now can set it up while they're alive, or leave it to you under their Last Will and Testament. It's a flexible asset protection tool.
Many of the legal and financial strategies for assisting a disabled person are drawn from the practice of Elder Law. It has a vast array of methods for guarding money, income and assets for those with debilitating illnesses and injuries, and for providing future financial support. A Lamson & Cutner attorney can give you more information on these planning techniques.