If happens if my mother is in a nursing home paid for by Medicaid and my father recently passed away and we received a $10,000 life insurance payment?

Get Legal Help Today

 Secured with SHA-256 Encryption

If happens if my mother is in a nursing home paid for by Medicaid and my father recently passed away and we received a $10,000 life insurance payment?

Is there a way to gift that money to the children without it going to the nursing home?

Asked on July 31, 2014 under Estate Planning, South Dakota

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

I am sure that you are asking this becuase you know that Medicaid has strict income and resource limits, so an inheritance can make a Medicaid recipient ineligible for Medicaid. An inheritance will be counted as income in the month it is received. While there are ways to "spend down" the money, you will need to discuss your particular circumstances with a lawyer in your area. She may be able to give it to a spouse, a child with special needs, or the child's special needs trust. But the liklihood is that the nursing home will have to be paid with it that first month (at the Medicaid rate). She may also pre-pay an irrevocable funeral contract or buy burial items for a close relative. If properly spent down she will be eligible the next month for Medicaid. 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption