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Will an inheritance affect Medicaid?

My mom had a massive stroke at age 70, she went on Medicaid to pay for her nursing home care. Her mother died recently and left her a large sum of money. How does that affect her Medicaid?
Status: Open    Jan 19, 2015 - 07:31 AM


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Mar 31, 2016 - 08:32 AM

Depending upon the state and/or county, the inheritance might well disqualify her from Medicaid. The inheritance would preferably have been left to a Special Needs Trust for the benefit of your mother with a minimal payout provision. That might have protected the corpus of the trust proceeds at her death from a Medicaid lien.

You should talk to an elder law attorney. Most likely your mother will have to requalify for Medicaid, but there are some steps that can be taken to lessen the spend down amount prior to her re-qualification, or avoid a Medicaid lien at her death.

Apr 01, 2016 - 10:14 AM

As it would be a new asset, it would affect her Medicaid and she would probably lose her benefits. You may want to consult with an elder law attorney in your state to see if there are any planning options available.

Apr 04, 2016 - 10:16 AM

As you probably know, Medicaid has very strict income and resource limits. If someone receives an inheritance while already on Medicaid, it’s viewed as an asset, and Medicaid benefits are put on hold until the money is spent down in an allowable fashion. At that point, the patient needs to reapply for Medicaid, and then the benefits can resume.
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By marykbrady on Aug 26, 2016 - 02:59 PM | Like (0)  |  Report

I live in Washington State and live in Subsidized Housing with the King County Housing Authority. I am on Medicaid. In November 2016 I will receive $1000. from SSI. I know they will charge rent based on this income. I will also receive and inheritance of approx $50,000 from my mother's death. How will this income affect my living and Medicaid.

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