Protecting Inheritance On Medicaid

Summary

Receiving an inheritance while on Medicaid requires careful planning to maintain eligibility. Options include setting up a Special Needs Trust or spending on exempt assets like a primary residence or vehicle. Gifting inheritance may affect eligibility due to the 60-month look-back period. Consulting an elder law attorney is crucial for compliance with state-specific rules.

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what is a special needs trust?
A Special Needs Trust (SNT) is designed to allow individuals with disabilities to receive inheritances, gifts, or settlements without losing eligibility for government benefits like Medicaid. It manages and distributes funds for the benefit of the individual while preserving their benefit eligibility.
what are expempt assets?
Exempt assets are those that are not counted when determining eligibility for Medicaid. In Arizona, some common exempt assets include:
- Primary residence, if it's your home.
- One vehicle.
- Personal belongings and household goods.
- Burial plots and certain life insurance policies.
It's important to consult with an elder law attorney to ensure compliance with Medicaid rules.
can i buy a life insurance policy at any age?
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You can purchase a life insurance policy at almost any age, but options may differ based on age and health. Typically, younger individuals have access to more affordable premiums. It's advisable to consult with a financial advisor or insurance agent to explore available options tailored to your needs.
can i gift any of the inheitance to my kids?
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In Arizona, gifting part of your inheritance to your kids may affect your Medicaid eligibility if done within a certain period known as the "look-back period," which is typically 60 months before applying for Medicaid. It's crucial to consult with an elder law attorney to navigate this situation properly.
what are the laws of ohio on gifting an inheiritance?
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In Ohio, gifting an inheritance can impact Medicaid eligibility due to the "look-back period," which is also 60 months. Transferring assets during this time could affect your eligibility for Medicaid benefits. Consulting with an elder law attorney is recommended for personalized advice and compliance with state laws.