If I do not tell Medicaid about an inheritance check, is that considered wrong even if I'm not going to use it?

The money to your daughter will be considered a gift. Once you become eligible after spending the money, Medicaid will look back at your financial records for a period of five years. They will find the money you gave your daughter which will result in you being penalized a dollar amount that is equal to the gift.

The reasoning is that I and everybody else that pays taxes pay for your medical care, I do not care to decrease your assets so you can pay your daughters credit card off reducing the amount you have available for your medical expenses. Your money is for your care.

Oh dear.

Sunshine, call your husband's caseworker and give him all of the information you've explained here. He will then be able to explain to you what you should do and what will happen, and you can rely on his advice. I hope the inheritance check arrived after you last spoke to him?

For future reference, lying on official forms - whether by making a false statement or by omitting inconvenient details - is always wrong and almost always leads to trouble. At best it will make you anxious, and invalidate your claim. At worst it could land you in jail. It isn't worth it. Don't do it.

since you were just added in september it may be fairly easy to fix. I am going to tell you to consult with an elder law attorney that specializes in Medicaid planning BEFORE you talk to Medicaid caseworker. Do you have assets and hubby does not? See that attorney, it will be well worth the cost. You maybe responsible for 1/2 of hubby's bills.

Sunshine I'm sorry, I didn't mean to worry you - and don't worry. Clearly the inheritance arrived long after your earlier application, so what you put on your application was perfectly true and correct at the time. Now something else has happened, so it would be correct to provide that information, that's all.

Depending on how large a sum the check was for, it may not even change anything - but you'll be much better off finding out than worrying about how to get round it or, conversely, needlessly giving up on financial support that you are entitled to.

I work as a Community Resources Specialist and sometimes I have to help patients figure out their benefits and entitlements. Medicaid has rules and benefit requirements that vary by the state that grants it, so check with your state's DHHS (Dept. of Health and Human Svcs.) or whatever entity oversees Medicaid to check about the "asset limit" rule for your state. In my state of Nebraska, in order to qualify as a person "at poverty level in need of Medicaid", a person has to have low income plus a person is only allowed to have up to $2,000 worth of "assets" - and that includes life insurance policies, 'normal' burial plots (that a person could sell for income), money in the bank, stocks, 401K retirement funds.... almost anything.
The short answer is: Yes, you have to declare the inheritance. If you don't, the review agents at DHHS or Medicare will likely see it on your SSI income report for the next year (because inheritances are taxed and traced by SSN number) and then you'll owe back, in cash, the benefits they granted to you.
However, at least in NE, there is legitimate ways to 'get around' that rule for people in your situation: Establish an "irrevocable burial trust" with a specific funeral home that can only be used for end of life expenses. It is like life insurance, but it can't be 'cashed in', so it doesn't count as an "asset". There may be a limit to what amount is "allowable".

Sun yes report the inheritance to them. If you do not you will find nothing but trouble. They should allow you to prepay funeral and burial without a problem. When the remaining is down to $2,000.00. Then you will again be eligible for Medicaid. You are allowed to have a car, do you need a newer model? Dental work? Anything that you have needed but not able to afford?

Your inheritance is reported to the government, Medicaid will find out about it so do not try to hide it and DO NOT gift any of it to anyone!

When on Medicaid, which you claim to be on, you are only allowed to own $2,000 in countable assets.

you can prepay both of your funeral and burial expenses, and then claim the rest .

Definitely check with SOMEONE knowledgeable about your state's laws. I went through something similar in trying to help my aunt and uncle, and in Florida, there are unlimited transfers between spouses allowed, and the medicaid recipient only has to have their bank accounts/CDs etc. below $2,000 ONE day a month. You may be able to "give" your husband some of the money without him being knocked off medicaid, or as has been suggested, buy a newer car or have something not covered by medicaid done, or get an irrevocable pre-paid insurance policy for burial benefits - but ALL must be done in accordance with the rules in your state. The rules also require reporting of things like income, and gifts. The good news is that the gift may only knock you off medicaid for a few months - better to get that out of the way now, and keep the medicaid, then to cancel it and find out you can't get it when you need it most because you will still have to go through the "lookback" period. This is NOT the time for guessing, or getting answers from people who are also guessing (we don't even know the state you are in so cannot advise you about your state's rules). You need to get advice from someone who is familiar with YOUR state's rules. Go online to the Q&A section on Medicaid in your state - I have never seen a Q&A that didn't address this issue and give a "for instance" scenario that tells how many months you may be ineligible because of the gift, or what you can spend the inheritance on with a minimum of impact to medicaid eligibility.

I think that you can put down $1500 for burial. Needless to say you will have to be cremated.