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Medicaid eligibility - inheritance

Rochester, MI |

when someone is on Medicaid, lives in an income based facility, receives
food stamps and receives an inheritance, does this inheritance void the
eligibility of Medicaid? Is there an amount of that inheritance
disqualify that person from being on Medicaid. Once the inheritance is spent,
say on health related issues, a new car, and pay off bills, the money is gone.
This is in Michigan
And then caught in the "spin-cycle" back on Medicaid.

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Attorney answers 2


Medicaid is typically "need based." So, if you inherit a substanital sum of money, you most likely will be over the minimum income levels or asset levels to receive medicaid until the money is spent down. This is true with SSI benefits as well. If you have SSDI benefits due to a disability, your benefits should be safe, even if you inheret money.



you say this is true with ssi benefits as well. Meaning that being over the minimum income levels until the money is spent down? However, if the SSI is due to a disability, the benefits should be safe. But if Medicaid is separate from SSI, then that will mean if the inheritance is over that limit, again, the assets will need to be spent down. Does this mean the possibility the livening in an income based facility will ask you to move? Thank you for the follow up.


As a general rule, having more than $2,000 in "countable resources" disqualifies an individual for Medicaid. If the inheritance is substantial, a knowledgeable Medicaid beneficiary would consult with an experienced public-benefits attorney or elder law attorney about a trust arrangement that would allow the beneficiary to have the benefit of the inheritance and Medicaid as well.

Best wishes for an outcome you can accept, and please remember to designate a best answer.

This answer is offered as a public service for general information only and may not be relied upon as legal advice.

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