Medicaid and inheritance of $900. How will this effect eligibility? - AgingCare.com

Medicaid and inheritance of $900. How will this effect eligibility?

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My mother in law is in an assisted living facility in NJ which is currently being paid by Medicaid. Her parents left her a grave plot that is worth $900. Can she inherit this money? If she sells this plot, how will it effect her Medicaid eligibility? Thanks so much.

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Of course she can! In fact, she can inherit any amount of money but if it's over the cap, she'll have to spend it down and her benefits will be temporarily paused until the spend down is complete.

Now, if she happens to be on Social Security, remember the new able act and the "savings accounts" President Trump was talking about and one of his first speeches about healthcare when he first took office. It wasn't long after that I found out through a little research about the able act and you may also want to research the able act. You can now have a much higher amount than you used to be able to before the able act. That's because so many people on low income weren't allowed to have a whole lot of money and when they needed something more than they were able to cover without losing benefits, they would just have to do without if their insurance wouldn't cover it. I'm sure this was a very widespread devastation all the way across the board if you happened to need something like a life-saving medicine or even a procedure that your Medicaid wouldn't cover and you didn't have the money to pay the difference. Also if you needed certain medical equipment like a wheelchair, you were screwed before the able act. Now that we have a new able act, you can now have up to a very high maximum amount in the able account. You may really want to research these able accounts, and maybe even open one yourself but only if you're eligible. The able accounts were created just for those whose money and resources come from the state and are very limited. They were made for people with disabilities. The only downfall is if something happens to you, Medicaid supposedly goes in and takes money from that account to repay themselves and what's left over goes back to the family. If I were you, I would open and able account and use your savings to first set up your funeral pre need but request to pay and insurance company in case the funeral home bails out or goes under and out of business. At least you know that paying your money to an insurance company, the money is more likely to be there because it's more secured. Another option would be to take that money and open a POD account for the funeral home and make them the beneficiary so that way your funeral arrangements will be covered but don't tell them about it because you don't want them trying to coerce you to cash out at the time you set up your arrangements. Another thing you could do with your able account savings is to save for a car. Be careful in which state you open an able account, some states don't take out-of-state applicants where as others do. Some states also have exorbitant maintenance fees, but states like Tennessee are free. Choose your state very wisely because it will cost you if you have to leave your account sit idle for any amount of time and you happen to have a maintenance fee. If something were to happen to you, you may wake up one day from a coma only to find your able account of hundreds or even thousands of dollars is one day empty because it's been depleted by maintenance fees. These are the ones you must stay on top of and keep deposits going in every single month but the free ones are actually better. That's because you can leave them sit idle for quite some time and never lose a dime to maintenance fees. These are handy if anything were to ever happen to you should you slip into a coma and you're out for a while. That's why these free accounts are handy in case you ever have to change your financial situation and cover some unexpected emergency out of your regular bank account. I can't tell you how handy digital banking really is and how handy it came when I broke my ankle July 4 of 2017 and I couldn't even get out of bed. I'm so glad by then I had an able account and was able to set up monthly automatic transfers to my able account. Savings adds up very quickly depending on how much you're able to save each month. In my case, I'm in a position where I don't really have many expenses and right now I'm trying to get a car but with my tiny check, it may take several years to even consider a car. Right now I'm expecting money from a lawsuit as a result of the aftermath of elder financial abuse against my vulnerable dad who had Alzheimer's and the insurance company knowingly paid the fraudster who wasn't even entitled to the money. What ended up happening in that case is the POA living with my dad ended up changing the life insurance beneficiary from next of kin to herself. In other words, she acted illegally and abused her POA powers and now it's just a matter of time before I get paid and can finally get a car I can't otherwise get that easy because cars for some people are just not easy to get due to the very high prices on most of them unless they happen to be a piece of junk. right now I'd gladly drive a piece of junk just to be able to take a friend with me and just get out of here and go somewhere I'm that desperate. Right now I'd be happy with any car that ran and was safe enough to drive over being stuck with nothing to drive. When I get my money I'm definitely getting most likely a brand new car, brand new is something I've never had before. If I had my way I'd even get a flying car and get my pilots license since I love flying. We're actually allowed to have one home and one car regardless of its value as long as we live in the home and the car is used for our transport, especially for medical. Therefore, I know I can get any car on the lot or even go somewhere and get a flying car if I had that kind of money. If I did, guess what? I would get a flying car and get my pilots license in a heartbeat
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Medicaid allows the person to own $2,000 in countable assests.
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Freqflyer..... just had to add to your list that you can get the ashes turned into... wait...wait....DIAMONDS!!!. Really truly there’s a couple of companies that you can send the ashes of whatever deceased (hubs, kitty, Rex the dog, Pat the bunny) and ashes get heated to produce diamonds. They add in diamond dust to get whatever carat you want. Then placed into jewelry that they can do or stones sent back to you to set. 

Can’t make this stuff up! Big enough family possibly a tennis bracelet of life 💎’s
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The original write of this thread had mentioned that the family is selling back the plots to the cemetery as the family all plan to be cremated, thus would have no need for the plots.

With cremations, there are four things one can do with the ashes... put ashes in an urn and keep some place in the house.... or have the ashes scattered.... or purchase what is call a columbary at the cemetery which houses the urn, it's like a drawer where the person's name, date of birth, and date of death are inscribed on the outside.... or the urn can be placed with a family member who is already buried, the urn goes above the casket vault in ground. 
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If I understand correctly, the plot is not in monetary form, it simply has a value. So where is she to be buried when she dies? That is an expense that your spouse does not have to be burdened with. Leave it be... My mother has a plot and Medicaid is aware.
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WAIT! Please check with an Elder Lawyer right away.
Even people on Medicaid are allowed to keep a 'non-interest' savings of $2,500 reserved for their burial (this is in Florida, so check with your state)...even if they have already fully prepaid their funeral.

The account can be in their name and have a beneficiary - whoever is responsible as POA...Medicaid does not take these reserved burial funds. ONLY those burial funds can be in that particular account and it must be labeled for such a purpose.

So, if your MIL does not yet have up to this amount as burial reserves, they are allowed. But call an Elder Lawyer as all cases are different.
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Your MIL cannot really inherit this until the time of death. It's not like she can move into the plot before her time.

And, $900 doesn't sound like enough to hurt her Medicaid anyway. But if you just leave the plot "as is" I would think the less said the better. She won't inherit and move in until her time comes.
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One of her siblings is handling the transaction. The cemetery is buying the plots back from the family. All of the siblings want to be cremated.
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Hi freqflyer, sorry, I thought I answered your question yesterday regarding why she wouldn't want to be buried next to her parents. Unfortunately, neither she nor or siblings have a sentimental bone in their bodies. The $900 is more important. Sad but true.
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KAM, does your mother-in-law have a Deed for the burial plot? Difficult to sell unless there is a Deed. It's the same as buying property. Some cemeteries will buy back the plot at today's selling price minus admin cost. That can vary from cemetery to cemetery.

But your mother-in-law would need to have it written down somewhere that when the time comes, where will be her final resting place. Buying a new plot can become hectic for the family unless Mother-in-law doesn't plan to use a plot and have her aches in an urn or spread some where.
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