My sister is kind of disabled and on Medicaid & Medicare. She’s getting an inheritance. Will she be able to keep the money? thank you for your help
ANSWER BY MARGARET CROSS-BELIVEAU:
As she is on Medicare, I am assuming that she is over 65. Different rules apply for different ages. Medicaid is an asset based program. If she receives an inheritance, she will no longer be eligible for Medicaid if she keeps it. Her options will be to establish a d(4)(a) trust, which is a self-settled special needs trust with a family member as Trustee, or set up an account with a pooled trust, which is also a special needs trust but run by a charity. In both scenarios, any money remaining at your sister’s death will be paid over to the state to reimburse it for its expenses paid on your sister’s behalf. She can’t make any other gifts without incurring a transfer penalty.
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Legal Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on since each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. A lawyer experienced in the subject area and licensed to practice in the jurisdiction should be consulted for legal advice.
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The elder law attorneys at the Beliveau Law Group provide legal services for estate and asset protection planning. The law firm has offices and attorneys in Naples, Florida; Waltham, Massachusetts; and Salem, New Hampshire.