Estate Law Questions? Ask an Estate Lawyer.
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An inheritance will be counted as income in the month it is received and it would affect her Medicaid as the value of her estate would increase because of the additional $15,000 and she would not be eligible until the $15,000 is paid down. When your mother receives her inheritance, you or whoever is representing her will have to inform the Medicaid agency for your state. Medicaid coverage will then end until she has again spent down her money to the countable asset limit, $2,000 in many states. The money can be spent for anything that will benefit your mother, including prepaying her funeral, her health costs, burial items for a close relative, etc. An elder law attorney in your area may be able to help best in this regard. Health insurance premiums or costs of care must now be paid out of pocket until she can again become eligible for Medicaid. Any gifts will be subject to the 5 year look-back period and most likely cannot be made.
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