How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168, Accountant
Category: Finance
Satisfied Customers: 3737
Experience:  Tax Accountant
58285678
Type Your Finance Question Here...
Tax.appeal.168 is online now
A new question is answered every 9 seconds

Mother is on Medicaid in nursing home. She just received

Customer Question

Mother is on Medicaid in nursing home. She just received a$25,000 inheritance. Do I have to turn this over to Medicaid?
Submitted: 2 years ago.
Category: Finance
Expert:  Tax.appeal.168 replied 2 years ago.

You are required to inform Medicaid that she rec'd the inheritance, but not turn the money over to them. It is likely that her Medicaid will also end until the money has been spent down to the allowed income limit. Following is information from a webpage where someone asked a very similar question.

--------------------------

Q: My mother is currently on Medicaid. She has Alzheimer's Disease. We have been informed that she will be receiving a inheritance from a recently deceased family member. How does this work with Medicaid? I know that she will no longer will be eligible for Medicaid. But what happens with this money? Do they have the right to monitor her money? Tell us how this money can be used?

A: You have it right. 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, travel, dining out, clothes, television, DVD player, and paying off any debts she may have. In most cases, your mother cannot make gifts with her money. However, there are some exceptions to this rule and in some states good planning techniques that may permit some gifting. To be sure, you will need to consult with a qualified elder law attorney in your state.

REFERENCE SOURCE:

http://www.elderlawanswers.com/what-happens-when-a-medicaid-recipient-receives-an-inheritance-12446

What state is your mother in? I may be able to find more definitive information relating to the state.