
Understanding Medicaid and Inheritance
Unlike Medicare, which is not means-tested, Medicaid eligibility requires that you must meet strict income and asset limits to qualify. Generally, you cannot remain qualified if you acquire additional resources. Even small changes in your finances can trigger reassessment of your eligibility.
This is where the inheritance issue becomes crucial. Receiving inheritance can seem like a blessing, and in many ways it is. For those on Medicaid, however, an inheritance can present unexpected challenges. Our main question is: Is inheritance counted as income against Medicaid?
Understanding how Medicaid treats inheritance is the first step in making a well-informed decision. This guide helps you plan the necessary action and preserve your eligibility.
How Inheritance Affects Medicaid Eligibility
Inheritance can impact Medicaid eligibility:
As a Resource (Asset)
Strategies to Protect Medicaid Eligibility
If you’re on Medicaid and anticipate receiving an inheritance, you can employ legal strategies to protect your eligibility:
1. Special Needs Trust (SNT)
2. Pooled Trust
3. Spend Down
4. Transferring Assets to a Trust for Family Members
Legal Implications and Considerations
Medicaid Estate Recovery Program
Medicaid can later seek reimbursement from the estates of deceased beneficiaries for services they received. You need to plan carefully if you want to minimize potential estate recovery.
Summary
Need Guidance?
Contact Fink Rosner Ershow-Levenberg Marinaro, LLC today for personalized Medicaid and estate planning support that protects your benefits and secures your financial future.