Inheriting large sum of money and what to keep and use for home purchase and credit card bills and still keep Medicaid programs

Inheritance recipient is disabled from stroke and diabetes yet living at home under care of spouse

Garnavillo, IA -

Attorney Answers (3)

Lawrence A Friedman

Lawrence A Friedman

Elder Law Attorney - Bridgewater, NJ
Answered

Since Medicaid has income and resource limit a large inheritance will disqualify the heir for Medicaid unless the heir works with an elder law attorney and arranges the inheritance in a way that minimizes negative impacts. Might make sense to use a special needs trust depending on various factors. A principal residence is Medicaid exempt.

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
James P. Frederick

James P. Frederick

Elder Law Attorney - Livonia, MI
Answered

I agree with Attorney Friedman. Elder law is complicated and the laws change frequently. You need to consult with someone who specializes in this area of law to take advantage of the exemptions that the law allows you and to plan for the future. This depends on the peculiar facts of your situation and is not the kind of thing that any lawyer can tell you in a couple hundred words or less.

James Frederick

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Jerry E Shiles

Jerry E Shiles

Elder Law Attorney - Oklahoma City, OK
Answered

Both of the prior answers provided you with good advice. There are provisions under the law that allow you shelter an inheritance so you are not immediately disqualified from Medicaid, but they normally have very specific state requirement. I encourage you to contact a qualified elder law attorney in IA to address your concerns. You can normally locate one through AVVO or by going to the NAELA website. Good luck.

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