Portland, OR asked in Elder Law for New York

Q: If disabled brother doesn't get $86k inheritance until age 65, is there a way to protect the money from Medicaid?

I am executor. Brother has cancer and turns 65 in 2 months. I understand a trust can be used before 65. After that, Medicaid is secondary insurance to Medicare. Brother is not in long term care. He gets retirement social security income. Does he potentially lose less to Medicaid once he is on Medicare? Should he just take the money and spend it down? He'll be on regular Medicare; not advantage plan as far as I know.

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1 Lawyer Answer
Benjamin Z. Katz
Benjamin Z. Katz
PREMIUM
Answered
  • Elder Law Lawyer
  • New York, NY
  • Licensed in New York

A: It is better to be on Medicare to minimize expenses. Once he receives his inheritance, he may not qualify for Medicaid coverage, if he current qualifies, without spending down first. However, there are planning techniques to protect a portion of the money if he needs to spend down.

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