Victorville, CA asked in Public Benefits for California

Q: Is there anyway for her to receive this inheritance without her becoming ineligible for SSI and medicaid insurance?

My mom is on SSI and my grandparents passed away and she is going to be getting 40,000 dollar inheritance. Her medication every month costs thousands of dollars and she also just started seeing a specialist that I know is super expensive to see. So losing her Medicaid health insurance would definitely be detrimental to her health.

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1 Lawyer Answer
James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Sacramento, CA
  • Licensed in California

A: In California, receiving a large inheritance can affect eligibility for Supplemental Security Income (SSI) and Medicaid (Medi-Cal in California). However, there are legal avenues to manage this inheritance in a way that preserves these essential benefits. One common strategy is setting up a Special Needs Trust.

With a Special Needs Trust, the inheritance is placed in a trust specifically designed for beneficiaries with disabilities. This trust allows for the inheritance to be used to enhance the quality of life of the beneficiary, covering expenses like education, therapy, personal care attendants, and other needs not provided by government programs, without affecting their eligibility for SSI and Medicaid.

It's crucial to consult with an attorney experienced in special needs planning to ensure the trust is properly set up to meet legal requirements and to provide the best protection for your mother's interests. They can guide you through the specific rules and the best options available under California law. This way, your mother can retain her critical health coverage while still benefiting from her inheritance.

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