What can be done to remain on Medicaid if you received a check for $7000 from the death of a parent.

Question

Special needs person living on SS,  is low income & on Medicaid.  He received a $7000 check after his mother died.  We are trying to find out what we can do so he doesn't get kicked off Medicaid.  This money is everything he has in the world.  He can't afford medical insurance and drugs if Medicaid is taken away.  He is a companion to my sister also special needs and they share the costs of an apartment.  Before my Dad died he set up a trust She has a trust with enough assets that she can't qualify for Medicaid.  Could he transfer his money to her?  Just looking for options.  $7000 isn't a lot of money if he has to pay a lot for a lawyer.

Nina Whitehurst · Answer

Whatever he does, he shouldn’t transfer the money to your sister. That would be considered in uncompensated transfer and would generate a penalty period And he will not have the funds to pay through that period of ineligibility. The easiest solution is to spend the money quickly on services such as medical and dental (but those are not the only options) or non countable assets. A special needs attorney can help you sort this out. You can also find books on this but he really doesn’t have time to waste.  Ineligibility starts the first day of the month after the inheritance is received, so the money needs to be all spent within the same month of receipt.

Q: What can be done to remain on Medicaid if you received a check for $7000 from the death of a parent.