Mom (88) is in a Medicaid MLTC program in NYC - she has a home health aide. Mom has community Medicaid with a small monthly spend down. There is no possibility of her ever going into a nursing home. She has zero assets. However, mom will come into $50,000 upon a relative's death. I understand this lump sum would be considered income in the month received and an asset thereafter. I also see there is no transfer penalty for community Medicaid. Can mom transfer the money to her son and/or other relatives to reduce her assets to the Medicaid threshold to stay eligible for Medicaid?
Medicaid is not “taking” your mother’s inheritance, your mother’s inheritance would simply be paying for care she is receiving.
Why do you not think the $50k should be spent on her care but transferred to another family member to hide it?
With the high cost of care, her $50k will probably last 3-4 months and then you can have your mother reapply for Medicaid.
With the inheritance, it would be counted as income and then assets and your mom would no longer be eligible for Medicaid. She would have to use her own assets to pay for her own care until such time as she "spent down" her assets to the point she was Medicaid eligible again at which point, Medicaid would kick back in. You would want to be in contact with the Medicaid worker before your mom spent down to the eligibility point so that everything was in place when she got there.
If she were to pass the inheritance on and not use it for her own care there would be a penalty that may not allow her to be on Medicaid anyway.
Talk to your Medicaid worker and get the details. Be upfront.
You really do need a lawyer. This inheritance is income that can be used for her care. There is a five year look back when needing Medicaid for LTC. I doubt at 88 if a trust can be set up. Dorsey mentioned her son is Disabled. He can apply for Special Needs Trust if under the age of 65. Its basically for those people with mental challenges and physical. My nephew has one to protect insurance money from his mothers death. It's not for people who disabilities stem from aging.
See All Answers