2 families- one with 4 children (Chicago) and one with 6 children (New York) both have low incomes and are receiving food stamps and medicaid . In a few months the New York family is getting 58k and the Chicago family 120 k from stock in a private company that they were given by a deceased grandfather. The money was not accessible to them previously. However the stock was in their name but they had no idea what money was there. The company is being liquidated and the money distributed in a few months. Should they have previously reported this as an assert or a resource to medicaid? Could they get into trouble for that?
Possibly. This may be considered income and therefore subject to being counted against Medicaid or Social Security eligibility.
Best to talk to an estate planning lawyer. There may be a way around it, such as establishing a Special Needs Trust, but there would be time limits.
This answer posted on Avvo is for informational and educational purposes only. There is no attorney-client relationship created or formed and you should not rely on this as legal advice. The suggestion is made that if you wish to protect your rights, you consult with an attorney immediately.
What a very interesting question. I would have to agree with both colleagues that more information is required. I think Mr. Hoffman was especially astute in suggesting a special needs trust. However, normally property owned by the beneficiary (first party property) is not eligible for special needs trust. There are exceptions, however, and you will need a very sharp and experienced special needs trust attorney to craft a solution. Buy acclaim, the leading attorney in the field is Brian Rubin.
I greatly doubt that anyone will be troubled by the fact that this asset was not reported initially. However, it most definitely is an assset now, and may be considered in the means test. What that means, simply put, is that the recipient must spend down the "excess" property before receiving benefits. Again, I cannot urge strongly enough that you consult an attorney experienced in this field. I can say for certain that would not be me.
Answering this question does not set up a attorney-client relationship between us. My comments do not constitute legal advice. If you would like to pursue representation, please contact me.
More information is definitely needed. For instance, it may depend on the type of Medicaid the family is currently receiving (e.g., for long-term care, AFDC, etc.) as some assets are counted differently for different categories. Medicaid laws are very complex, and it is impossible to give any kind of personalized answer with such limited facts. You would be well served to find an attorney experienced in Medicaid laws in your area. Good luck.
This is NOT legal advice. There is no attorney-client relationship formed by my response to your question. I am not your attorney. You should seek the advice of a local attorney with experience in the applicable area of law.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline