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.
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.
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.
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.
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.