| Inheritance and paying back Medicaid….read on:
READER QUESTION:
My adult disabled daughter has been receiving government benefits from her primary residence, Oregon. She is one of my beneficiaries. When she receives an inheritance upon my death, will she have to pay Oregon back for the benefits she has received? I have a trust that was created in NY. My primary residence is now Florida.
MY RESPONSE:
Upon your death, if your daughter receives an inheritance, she will not have to pay back the government while she is living but may have to upon her death for Medicaid expenses incurred after the age of 55. Of course, note that if she receives an inheritance, she may lose her needs-based government benefits. The way to fix both these problems is to change your estate plan so that you leave your daughter’s inheritance to her in a SPECIAL NEEDS TRUST (SNT). All of the money in the SNT can be used for the benefit of your daughter but she will not lose her benefits and there will be no eventual payback to Medicaid. |
