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My brother and I are helping my sister with process of applying for Medicaid and placement in NH. She will be receiving an inheritance approx 12 months from now after the sale of some property. It might be about $20k, and we’re working on how to handle that once she has the money in hand, since she’ll be in NH by then. (Spending within 30 days, prob irrev. funeral trust, etc, still learning.) But my question today is about a question on the Medicaid application asking if she’s expecting an inheritance. We will be answering it truthfully, but why is this asked on application when the time and amount is unknown right now? Could this cause delay in approval or even denied? I’m contacting our Dept. of Aging tomorrow, but would appreciate any personal insight or experience as well. Our sister has never been married, has no children, no assets other than her car.

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They ask so they know it’s coming. When the property is sold and your sisters portion is cut Medicaid will stop paying the balance of her monthly fees so her cash picks up the bill until it’s gone, then Medicaid picks it back up again, a pause if you will. They probably treat it like the sale of owned property, the money is used for expenses or reimbursement of expenses in the event of death. Now I don’t think it’s quite that simple and may depend on the state she is in but those are the basics. If the home she is going to has a Medicaid coordinator or social worker they will likely take the reins here since it’s about how they get paid. Being open about it all is the way to do it of course so just answer as best you can. Yes an inheritance is expected in the future but you don’t know exactly how much or when. They will ask for the details they need. At least this has been our experience so far.
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So Sissy is set to be an heir as per a will AND in the Estate (that the will is entered) there is an asset that was owned by the now deceased AND that IN THE FUTURE will be sold with a % to Sissy, is that it?

well imo if the property is an asset of an Estate in Probate, until the distribution is actually done it is not anyone else’s asset. The $ as an inheritance does not yet exist. What if property doesn’t sell in 12 months?, what if there end up being debts against the Estate that show up that property sale gets siphoned off to pay? What if Someone comes out of the woodwork to challenge the Executor or the distribution? It’s not a fixed $ amount like a beneficiary gets from the payout of a life insurance policy. Too many unknowns on property in an Estate imo, it is not real / tangible just yet. I’d check off the NO box on the application.

Then when it does come in - like the Executor will be sending Sissy a letter regarding the distribution & may need her to fill out paperwork & W-9 ahead of all this- then & only then when it’s about to be received then you contact the caseworker.
BUT
Between now & then, you can look to figure out what’s the best use for a spend-down ok by Medicaid. Could be a preneed funeral & burial but might be that Sissy 8 months from now really needs dental work and it’s $16K and LTC Medicaid by & large does not ever cover dental so that’s where that $ will be used. If Sissy could qualify for an Able account (I think their max is 14k), she maybe could do that and use the excess for dental, etc.

also if you know the executor if at all possible you want to ask them on Sissy’s behalf for her $ to be deposited right at the beginning of a month, like the 3rd or 4th. Not like the middle of the month or towards the end of the month. Why? Well the month the $ goes in, it is “income” but the following month if not completely spent it becomes an “asset”. Assets have a strict max of 2K for an individual on LTC Medicaid for most states. Excess income within the month can be spent down for legit needs for her… like dental, eyeglasses, hearing aids, a better wheelchair/walker then one that Medicaid provides, preneed funeral. But whatever done you really really want it all to clear within the month deposited. That could take time and you want as many days as possible to do the spend & get checks cleared while it’s “income”. So Sissy starts the month within Medicaid limits and ends the month within Medicaid limits & all clearly in the bank statement to show this. If it rolls over to become an asset, she may have to use all the $ to private pay for the NH till impoverished again and get re-eligible/ re-apply for Medicaid.
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Thanks everyone for sharing your insight, definitely will be able to use some of these tips. Everything's so confusing & advice like this helps ease the anxiety. This forum is a great resource, I've been a long-time lurker & finally signed up.
It might seem silly, I know my post was ambiguous, I just didn't want to type out the words that my Dad died last month and the sale of the house will be split among the 7 of us. We'll be keeping it for about a year while another sister stays there and we sort through everything. So we might have a little bit of control with the timing of things. I'm sure I'll be back with more questions.
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Why? Because it is not inheritance until mom passes. Most likely that value will be absorbed by Medicaid after mom passes and the house sells.

Who is the inheritance coming from?

This post is quite confusing.I

Someone passed? Left sis an inheritance? She will receive that after property sells? In the amount is 20k?

Sis is the one going to nursing home?I

If so, inheritance will pay for nursing home for a month or two after inheritance is received.
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Are you saying someone passed, there is a Will which names your sister as an inheritor, and it is currently in probate? You can consult with a Medicaid Planner for your sister's state. They'd be able to give you the more accurate answer.
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Does sister in the house need nursing home care?

Was dad in nursing home on Medicaid before he passed? If so, Medicaid will place a lien on the house equal to the cost of his care (Medicaid Estate Recovery Program, MERP). If sis provided dad medically necessary care she would possibly be permitted to remain in the home which could be a benefit. The value of the house could increase and delay Medicaid repayment. Are you saying the value of the home is 140K?

It would be to all's benefit to have the entire, unambiguous, clear picture. the question feels deceitful and you are paitering.

Otherwise we are just guessing and that will not do anyone any good. I hope you have an attorney involved.
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kibrij Mar 2022
It is in no way deceitful. Just because at first I hated to actually type out those words? And my sister had to go to the short term rehab 2 day before my Dad died, and with me up to my ears taking care of her and thrown into dealing with Medicare and Medicaid & things I never did before, I couldn't even properly deal with the grief because I was trying to keep my brain so focused on what was needed for my sister, who was calling me in the middle of the night hysterical. No, my Dad was not in a nursing home, we were blessed beyond measure that he died peacefully at home at the age of 94 with every single possible financial and legal situation squared up and buttoned down. The house should sell for close to 250,00, it's nice but outdated, they didn't have extra money for renovations, it will be split among the 7 of us after all fees. My question was only about being surprised at seeing the question on the Medicaid application after reading up on advice here about when Medicaid recognizes and accounts for any inheritance.
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