Can a person receiving care under medicaid accept real property bequethed by will without losing medicaid benefits.

Asked about 1 year ago - Holualoa, HI

property is held in trust. Trust att'y waiting to record deed until getting a definitive answer from medicaid patient. patient was going to disclaim property but was told this would be a transfer of assets and result in loss of medicaid eligibility. Any way around this?

Attorney answers (3)

  1. Robert William Haley

    Contributor Level 11

    3

    Lawyers agree

    Answered . The disclaimer would be considered a transfer of assets and subject to penalty, which is Medicaid ineligibility for a period of time. And, by inheriting the property the Medicaid recipient will have excess resources and become ineligible. I urge you to contact an experienced Elder Law attorney to ascertain if there is any other avenue to maintain eligibility. If not, the property may have to be listed for sale to maintain eligibility. If so, and the property is sold, an Elder Law attorney may be able to help you protect a portion of the cash proceeds!

  2. Kelly Scott Davis

    Pro

    Contributor Level 18

    1

    Lawyer agrees

    Answered . Unfortunately, as pointed out by Attorney Haley, receipt of the property would result in the Medicaid beneficiary being over asseted (unless the home becomes the primary personal residence) and a disclaimer would be a transfer for less than fair value, either of which terminates Medicaid. About the only choice is to intercept the bequest and put it into a special needs trust if appropriate. An experienced elder law attorney could work with the trust attorney to get it done.

  3. Lawrence A Friedman

    Contributor Level 18

    1

    Lawyer agrees

    Answered . Depending on circumstances, a special needs trust may be a viable option. Otherwise, patient can receive the property, go off Medicaid, do Medicaid planning to protect some assets and eventually go back on Medicaid. Consult an elder law attorney.

    Lawrence Friedman, Bridgewater, NJ. Certified as an Elder Law Attorney by the ABA approved National Elder Law Foundation, former Chair NJ State Bar Association Elder and Disabilities Law Section, Member Board of Consultors of NJSBA Real Property, Trusts & Estates Law Section, Vice Chair Special Needs Law Section of National Academy of Elder Law Attorneys, and Master of Laws (LL.M.) in Taxation from N.Y.U. School of Law. Visit SpecialNeedsNJ.com for articles and Q&A on elder law, special needs, wills, trusts, estates, and tax. Visit SpecialNeedsNJ.com/blog and subscribe for free timely updates to be delivered to your inbox. Information on both Avvo and SpecialNeedsNJ.com does not constitute legal advice, as it is general in nature and may not apply to your situation or be subject to important changes. No attorney client relationship exists unless set forth in written engagement terms.

    Lawrence Friedman, Bridgewater, NJ. Certified as an Elder Law Attorney by the ABA approved National Elder Law... more

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