Elder Law Answers
Receiving an Inheritance? Beware of Medicaid Income Limits
For most people, receiving an inheritance is something good, but for a nursing home resident on Medicaid, an inheritance m...
Read moreWould Someone Be Medicaid Eligible in This Scenario?
- June 11th, 2024
Q
Would an individual be Medicaid eligible in the following scenario? They entered a nursing home on February 16, 2024, at which time assets were below $1,000 and they applied for Medicaid through the facility. Veterans Aid and Attendance was applied for a year ago and was finally approved April 1, 2024, at which time a lump sum $15,000 payment was received. Within a week, prepaid funeral arrangements were made to spend down the $15,000. The individual passed away April 20, 2024, before Medicaid was ever approved.
A
They should be eligible since prepaying for a funeral is a legitimate spend down expense. In the worst-case scenario, they won’t be covered for the days between receipt of the funds and payment to the funeral home, but even that should not happen. (Of course, Medicaid agencies don’t always view things the same way as we attorneys.)
Read more about Medicaid spend down in the following articles:
- Medicaid Spend Down: Pay for More Than Just Medical Bills
- Using a Prepaid Funeral Contract for Medicaid Spend Down
- What to Look for in a Prepaid Funeral Plan
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.