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Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 10891
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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When a person is on Medicaid because of physical and/or

Customer Question

When a person is on Medicaid because of physical and/or financial disability, how would receiving any type of inheritance or trust fund possibly affect that person's Medicaid standing?
Submitted: 1 year ago.
Category: Social Security
Expert:  Lane replied 1 year ago.

Hi,

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An inheritance CAN make a person ineligible for benefits (for a period) ... depending on the benefit being received,

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For example if the person is receiving nursing home benefits ... the inheritance will make them ineligible for the time that the asset (above the 2000 limit) would pay FOR that benefit.

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Now, there ARE special types of trusts called special needs or supplemental needs trusts that can used to keep this from happening.A Supplemental Needs Trust enables a person under a physical or mental disability, or an individual with a chronic or acquired illness, to have, held in Trust for his or her benefit, an unlimited amount of assets. In a properly-drafted Supplemental Needs Trust, those assets are not considered countable assets for purposes of qualification for certain governmental benefits.

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But if the person simply receives cash or other investment assets FROM a trust, and has the discretion to use innany way they want, this is not a special needs trust and would again, cause a period on ineligibility.

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Please let me know what questions you have from here

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Lane

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Expert:  Lane replied 1 year ago.

Hi,

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I'm just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Lane

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