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Can I Inherit Property and Still Be Eligible for Medicaid?

Can I Inherit Property and Still Be Eligible for Medicaid?

Full question:

I am disabled with medicaid and medicare. Can my mother give me her property without me losing my benefits?

Category: Medicaid
Date: 04/07/2025
State: Missouri

Answer:

The answer will depend on the specific type of coverage you have and the value of the property. Medicaid is administered through state agencies and there are asset limts for eligibility, anywhere from $1,000 to $10,000, depending on the assistance you receive.

It may be possible to put the property in a special needs trust. There are very strict requirements that must be followed in drafting and administering Special Needs Trusts in order to have the intended effect of qualifying the beneficiary for need-based benefits. Depending on the source of the trust funds, some special needs trusts must be court-approved and age restrictions may apply. Filing requirements depend on the type of trust involved. For example, if the person with disabilities is receiving SSI, a Self-Settled Special Needs Trust should be filed with the Social Security Administration. Special Needs Trusts are complex because they involve state and federal government benefit laws and regulations as well as trust laws. We suggest you contact a local attorney who can review all the facts and documents involved.

If the trust is intended to supplement, rather than replace, government benefits, it must be properly drafted. Although requirements vary according to state law and the type of trust being established, some general rules include:

• Generally, only a parent, grandparent, legal guardian, or court can set up a special needs trust. The disabled person, no matter how competent, cannot be the "creator" of the trust (even if the trust is funded by his or her personal assets).
• Funds may not be available to the disabled beneficiary.
• The beneficiary cannot revoke the trust.
• The individual with special needs must be considered "permanently and totally disabled" under SSI criteria. Different rules apply to adults and children.
• Under the terms of the trust, the trustee may not be allowed to make payments or distributions that might interfere with government benefit eligibility (e.g., distributions cannot be made directly to the beneficiary).
• Special needs trusts may be created as part of a will or during the creator's lifetime.
• Special needs trusts have no limit on the amount of funds included and can be added to at any time.

Please see the information at the following links to determine eligibility:

http://www.dss.mo.gov/fsd/slmb.htm
http://www.dss.mo.gov/fsd/massist.htm

For further assistance, please see the contact information at the following link:

http://www.dss.mo.gov/fsd/massist.htm

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How do I protect my assets from Medicare and Medicaid?

To protect your assets from Medicare and Medicaid, consider strategies like creating a special needs trust, which allows you to set aside funds without affecting eligibility. It's also important to consult with an attorney specializing in elder law to understand your options, such as gifting assets within allowable limits or using irrevocable trusts. Always ensure that any action taken complies with federal and state regulations to avoid penalties.

How to avoid Medicaid taking your assets?

To avoid Medicaid taking your assets, you can utilize strategies like establishing a special needs trust or transferring assets to family members. However, be cautious of the look-back period, which can penalize you for asset transfers made within five years of applying for benefits. Consulting with a legal expert in Medicaid planning can help you navigate these rules effectively.

Under what circumstances can Medicaid take your house?

Medicaid can take your house if you do not have a spouse or dependent living there and if you qualify for long-term care benefits. If you receive benefits, the state may place a lien on your property to recover costs after your death. However, there are exemptions, such as if the home is occupied by a spouse or disabled child. It's advisable to consult with a legal expert for personalized guidance.

Will Medicaid take my mom's house?

Medicaid may take your mom's house if she is not living in it and qualifies for long-term care benefits. However, if she has a spouse or dependent living there, the property is typically exempt. Additionally, certain planning strategies, like transferring the home to a family member or placing it in a trust, can help protect it from Medicaid claims.

Can you give away assets to qualify for Medicaid?

You can give away assets to qualify for Medicaid, but be aware of the five-year look-back period. If you transfer assets for less than fair market value within this period, it may result in a penalty period during which you cannot qualify for benefits. It's crucial to consult with a legal expert to ensure compliance with Medicaid regulations and to explore safe strategies for asset transfer.

Will I lose my Medicaid if I get an inheritance?

Receiving an inheritance can affect your Medicaid eligibility if it pushes your assets above the allowable limit. However, if you place the inheritance into a special needs trust, it may not impact your benefits. Always consult with a legal professional to understand the implications of an inheritance on your Medicaid eligibility and to explore protective strategies.