Community Medicaid eligibility question. Can mom transfer upcoming inheritance?

Contact the local Area Agency on Aging and talk to a social worker. They can direct you. NyC is a law unto itself.

I would contact the Medicaid office and ask, or your attorney that deals with Family Law ( probate, wills, etc.).  The facility itself might have a social worker as well.  Area Wide Aging services might have the answer or can direct you.  We have 2-1-1 in OK to call with questions like that.  How about your CPA or tax advisor?

I believe you can transfer since I believe the lookback from community is 1 or 2 months......if it was institutional it would be 5 yrs.....but since she already has community - when does it renew? I think once it renews, if the money doesn't show up in her bank account within the last few months, she would be ok but def speak to a lawyer or the company that gives you her aide - they usually have a Medicaid specialist..

This may be a NY specific question. However, there may be exceptions that would allow for transfer without penalty. For example, if the recepient is on social security disability or a minor. It is worth a call to a NY Elder law attorney.

I would think she’d Be disqualified for continued Medicaid until that $50k is paid to NYC coffers.

Medicaid is not “taking” your mother’s inheritance, your mother’s inheritance would simply be paying for care she is receiving.

Why do you not think the $50k should be spent on her care but transferred to another family member to hide it?

With the high cost of care, her $50k will probably last 3-4 months and then you can have your mother reapply for Medicaid.

Why do we think we should shield assets to avoid paying for our own (in this case your mother's) elder care? We are a nation of greedy wanna-haves. From the wealthiest to the poorer.

Elder Attorney Time

Medicaid laws vary from state to state. and I would be careful about transferring monies to a son or relative without consulting an eldercare attorney. I am no attorney but common sense dictates this will be considered an income transfer in effort to hide the money--my opinion only and that's all it is.

We’re currently facing similar situation with my adult disabled son & inheritance. Find an attorney who specializes in Medicaid. There are a few and they can tell you how to either set up a trust and what the money can be spent on, or how to spend it down. Only certain things are considered ‘non countable’ with Medicaid. We started looking at handling this ourselves & way ,ore complicated than I feel comfortable with. Attorney may be expensive but that can be paid from inheritance. Good luck!

Why are you so sure she will never go into a nursing home? My opinion - any assets you have should pay for your care. ONLY when you have NO assets do you apply for government help. Medicaid make take the money to pay back what has already been spent on her. DO NOT give it away as this could bring legal trouble to the recipient.

Trying to hide money from Medicaid is never a good thing. The money should be spent on your mother.

Check with an elder law attorney about a trust.

People, remember not everyone is knowledgeable about Medicaid. I myself learned a lot from this forum. No one thinks of Medicaid until they need it. The poster is just asking a question.

You really do need a lawyer. This inheritance is income that can be used for her care. There is a five year look back when needing Medicaid for LTC. I doubt at 88 if a trust can be set up. Dorsey mentioned her son is Disabled. He can apply for Special Needs Trust if under the age of 65. Its basically for those people with mental challenges and physical. My nephew has one to protect insurance money from his mothers death. It's not for people who disabilities stem from aging.

Wow, lots of hostility.  I am not a Medicaid worker but work around it.  In Nebraska I counsel people not to make any changes to their finances, or allow changes, without consulting your Medicaid worker.  Everything makes a difference.

With the inheritance, it would be counted as income and then assets and your mom would no longer be eligible for Medicaid.  She would have to use her own assets to pay for her own care until such time as she "spent down" her assets to the point she was Medicaid eligible again at which point, Medicaid would kick back in.  You would want to be in contact with the Medicaid worker before your mom spent down to the eligibility point so that everything was in place when she got there.

If she were to pass the inheritance on and not use it for her own care there would be a penalty that may not allow her to be on Medicaid anyway.

Talk to your Medicaid worker and get the details.  Be upfront.

As I understand it your Mom cannot transfer this money. She can pay off debts with it, but it is income and might change the threshold. Is the relative who left the money in any position to change the bequest.

Consult an estate/elder law attorney, maybe even the one handling the relatives estate she will inherit from. There may be ways to pass it through or put it in a trust of some sort that wouldn't pay out too much at a time or be touchable and considered an asset. I don't see this as trying to take advantage of the system or tax payers I see it as an effort to keep things status quo, they are working and having to go through the process all over again might very well do her more harm than simply spending down the inheritance. It will certainly cause far more work for someone and if that is an attorney it simply means lining their pockets not saving the tax payers in the end not to mention the stress on mom and you.

I have not read comments yet but have to be honest here. If she has an inheritance coming, that should be used for your moms care if possible. Why shield it. I guess there are rules and loopholes people use all the time. For example, people of means transfer money to heirs up to the tax free limit of a gift years earlier, to protect their money from the government in a claw back period, so on one hand if others do it, why not you? Tough question I know.

NYC Community Medicaid is different from all other Medicaid plans. The OP REALLY needs to consult with a SW from her local Area Agency on Aging.

When you consult an attorney, find out - if the funds cannot be transferred and she will lose Medicaid eligibility - what will need to be done to get her back under Medicaid as soon as the $50k is gone.

This question should be posed to an elder estate lawyer.

New York is a completely different program than other states, as Barb has already said a couple of times. Consult an elder law attorney or what Barb said.

Pretty much, what strickl said below is true. She is already on Medicaid, so money she gets at this point is either going to be counted as available income to be used for her care (spend it down until eligible for Medicaid again) or there may be a a special needs trust (might have another name in NY) the money can go in to for things she needs.

If she is receiving Medicaid, her care is being funded by federal and state funding programs because income/assets are below a poverty level threshold. By coming in to money, she will be able to afford her own care for a period of time. The money in the inheritance is for her, so why not use it for her.

Your medicaid worker can tell you exactly how the inheritance will be applied to her case and if there is some sort of special needs trust allowed in your state, the worker can tell you how to get it set up. She may be able to handle the paperwork or may refer you to an attorney.

Do not try to work on this with the executor of the inheritance estate on your own. If things are not handled correctly, you could find her cut off from Medicaid altogether for a penalty period (equal to amt she would have received). Ex: transfer the money to yourself, and you'll end up writing a check every month to pay her bills anyway until she is eligible for Medicaid again. Call the Medicaid worker.

This is a very, very complex situation depending on your state. Under no circumstances try to answer this yourself. Go and interview and find the most experienced elder care attorney you can find (and check out all references, etc.). This is not something you should attempt to tackle. And don't let anyone know of this until you have professional legal input. You could lose everything and your mother as well. Protect yourself and her - and get legal advice. If any facility knows this, I assure you they will take it. And, if I am not wrong, anything inherited or otherwise coming to someone is going to reported to various federal and state authorities if it is over $l0,000. I don't know the laws or the details but you must, must get a real pro involved.

If you don't want to deal with reapplying and all the hassle that goes with it, your mother can just refuse the inheritance. You do not have to accept any inheritance.

I don't understand. What legal document creates the inheritance? A will? A trust with a pour-over will? Can the document be amended by the relative? If the relative who is leaving the $50,000 to your mother is still alive, then why can't that relative simply go to her/his lawyer and amend the will and/or trust to give the $50,000 to someone else? Please talk with an estate and trusts attorney.

Its time for a qualified elder care attorney. I sure wouldnt try to handle this on my own ....given the experience i went thru regarding medicaid after my grandmother passed away.... oh, and she had an attorney for 60 of her 91 years!!!
My 2 cents....