Can money be transferred to the mother's children to avoid a penalty for her (the mother) Medicaid eligibility

Question

My mother (who is in a nursing home) may inherit some money. Can the money be transfered to the children to avoid a penalty for her eligibility for medicad?

Answer 1

Your mother can disclaim the inheritance.

She cannot, however, decide to whom the money will pass. If the Will in question does not list a contingent beneficiary - the assets will remain in the estate of the deceased.

I would suggest talking to the person bequeathing the assets while there is still time to make changes. Or to see if there are contingent beneficiaries - a simple codicil can make things nice and tidy!

It will be far easier now than when your mom has to execute legal papers to disclaim assets. Especially if she is in a nursing home now - legal red tape does NOT get easier to stomach with age.

Talk to a financial professional or estate planning attorney while there is still time. It will be worth the money.

Laws will vary from state to state - so be careful what you read.

Good luck!

Answer 2

. The state is going to find out about any inheritance monies no matter what you do to try to prevent it.. To attempt to transfer it to the "children" is foolish because the state will find out about that also. There is one true way to help your mother. She shoulld spend the money. In fact if she recovers this inheritance, you can feel free to call Medicaid yourself, tell them how much money she has or will get, and advise them that you already know she can spend all of the money (as long as she does not buy a house), but you just need to know how much time she has to spend it so that her benefits aren't affected.
This may not sound as though it is legal, but it is.

Answer 3

It is my understanding that if your mother is receving medicaid and she is receving assistance to pay for the total cost of being in a nursing home. Then they will expect her to pay untill the money runs out. I have know people who transfered their assets to their children 2 years in advance to avoid the high cost and using up their savings. I would sugest seeing if the inheritance can be changed. In other words the will should be changed so the money goes directly to the children, and bnothing to the mother

Answer 4

No. You cannot transfer funds from your personal assets to anyone when you collect Medicaid...If she inherits money, her Medicaid may be reduced or, if the inheritance is large enough, be removed from Medicaid. The Medicaid program is for people who NEED assistance as part of the social security program.

Nobody gets a free ride, bub.....WE the TAXPAYERS pay your mothers expenses when she is on Medicaid.

Answer 5

Who would inherit the money if she was already dead? I know that sounds cruel, but there is a reason for asking. If the children are next in line, the mother can refuse the inheritance and it will pass to whoever is next as if she had never inherited it. That could accomplish what you are asking for.

Answer 6

If the money is left to your mother, it will be subject to the Medicaid spend down program. I suggest you speak to the social worker at the nursing home. He/she will have good advice for you.

Answer 7

Sure - rip off the taxpayers by having US pay for your mommy while you all spend the inheritance.

Answer 8

Nope = fraud. and the purpose of medicaid is to provide the indigent person care they could otherwise not afford.