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Christopher B, Esq
Christopher B, Esq, Attorney
Category: Estate Law
Satisfied Customers: 2982
Experience:  Litigation Attorney with education focus on estate planning and tax
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My mother is 81 years old and her nephew passed away

Customer Question

my mother is 81 years old and her nephew passed away recently. We were unaware that he had listed had listed her as beneficiary on his life insurance. Since she needs care in the nursing home and is eligible for Medicaid as well as Medicaid,how will this $15,000 affect her benefits, and if she is beneficiary, Is insurance payment considered income?
Submitted: 1 year ago.
Category: Estate Law
Expert:  Christopher B, Esq replied 1 year ago.

My name is***** and I will be helping you with your question today. This is for informational purposes only and does not establish an attorney client relationship.

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.

Please let me know if you have any further questions and please positively rate my answer if satisfied.