Inheritance Impact On Medicaid Eligibility
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Medicaid is a federal and state run healthcare benefit for people with low-incomes. Eligibility varies between states, but typically those who make less than two grand a month are eligible for Medicaid. Inheritance counts towards your monthly income meaning that, depending on the amount, you may lose your Medicaid eligibility upon receiving an inheritance.
Those who are on Medicaid might not be pleased about an inheritance coming their way if it means they are likely to lose their coverage, and understandably so. However, if you are on Medicaid and know that you will be receiving an inheritance sometime in the near future, you have options. It’s best to review your options and plan ahead so that you will be prepared for when the time comes.
Medicaid is not able to take your inheritance money from you. The only situation in which they will take money from you is if they were unaware of the inheritance that disqualified you from receiving Medicaid until months later. In which case, Medicaid is entitled to be repaid the money that they are owed for the time that you received Medicaid while ineligible.
It is also important to note that you absolutely must report your inheritance to Medicaid. Failure to do so can result in penalties, and Medicaid may even have grounds to sue.
Medicaid may affect what you plan to leave to your relatives in the event of your passing. The state reserves the right to claim a Medicaid recipient’s estate after their death unless:
Medicaid may also attempt to recover funds by putting a lien on your property, or a property that you’re due to inherit. Medicaid does this so that your property can act as a sort of collateral for the money that they spend on you. However, they cannot put a lien on your property if the previous exclusions listed apply. Additional exclusion for a lien is if someone else has equity in your home.
Protecting your assets in the event of your death is another complicated circumstance in which an attorney can be of great assistance. Laws will vary between states and an attorney will have extensive, helpful knowledge about your options. They may advise you to:
Your health and wellbeing should remain the number one priority when it comes to managing inheritances and Medicaid eligibility. Plan ahead for your own peace of mind, and seek help when necessary.
Jessica Fox Jessica Fox has been a freelance writer for five years, with a specialty in health, wellness, and insurance. During this time, she’s written for some of the biggest B2B and B2C brands from around the world. Jessica is also the mother of two young daughters and loves coffee, writing, and working out.
