What happens when someone is denied Medicaid and runs out of money?

Question about gifting. Does this mean no more birthday or Christmas gifts for kids and grandkids? I'm talking small amounts of $100 or less.

All they need to do is spend that inheritance money on their care. Then they will be under the threshold to be approved for Medicaid. If I'm misunderstanding you and they already gave that money away to someone then they won't be approved for Medicaid until the assigned penalty period is over. Penalty period is determined by a formula based on cost of care and amount gifted.

Married couple limit would be $3000, not $2000. $2000 is for a single person. But there are more sophisticated ways to handle the funds and become eligible sooner than having to spend down to the $3000 limit. I just went to a seminar on this last night. Find a qualified Medicaid senior law advisor for good advice that is CV relevant to their state

Once they are down to $2,000 they will meet the financial criteria for Medicaid.

so...spend it on their care. Tell them..do not make any gifts to anyone as that will cause them to not qualify when the money runs out

Once they spend down the inheritance on the nursing home they reapply for Medicaid. Do not give that inheritance to anyone else. That will not help as they would be penalized by Medicaid an amount equal to what was given away that they would have to self pay for nursing home. Make sure it is a nursing home that will accept Medicaid so they do not need to move again.