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Is the person living at home? In a skilled nursing facility?

The inheritance could disqualify the person from Medicaid, since the person's assets will be over the asset limit when the cash is distributed. But there are many ways the cash can be allocated to benefit the person, or perhaps other disabled family members, without disrupting Medicaid eligibility.

The person should talk with an Elder Law Attorney in their state, to plan for receipt of the inheritance. If the person lacks capacity to direct their financial affairs, is there a Power of Attorney document that designates an agent to manage the planning? If not, the Probate Court can designate a surrogate to act in the person's best interests.

Among the ideas to benefit the person, and maintain eligibility for Medicaid:

Purchase Non countable assets, such as prepaid funeral and burial account, personal items and services to improve quality of life

Transfer funds to a (d)(4)(C) Pooled Trust Account administered by a charity; funds from the account can pay for supplemental needs of the person

Transfer to fund a (d)(4)(A) trust for the benefit of a disabled person who is under age 65
https://www.law.cornell.edu/uscode/text/42/1396p

Using the Medicaid regulations for guidance, the inheritance presents a special opportunity to protect and improve quality of life for the person.
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It must be reported to Medicaid. Medicaid will stop and you will need to go into spend down again. Then reapply for Medicaid.
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I assumed the person is in a nursing home. If so, private paying for his room will eat up that money fast.
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