As I mentioned in a previous thread, my father is about to inherit several hundred thousand dollars from his late brother’s estate. However, apparently the estate is split between my father and his sister, who is now in a nursing home under Medicaid coverage. She has spent down her entire savings (or soon will).
Dad tells me that under the provisions of Medicaid, anything she inherits will go directly to the government. If true, this is not in the best interests of her or the rest of the family (except in the broad general sense that it helps to fund the Medicaid program), so I am looking for any suggestions (legal ones, obviously) for ways the family could retain as much of this cash as possible.
Dad has an eldercare lawyer working for him, and he will no doubt get good advice from him, but I’m just looking to get as much additional information as I can. If it makes any difference, my uncle lived in Arizona, Dad and I live in Maryland, and my aunt lives in New York City.
My questions:
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First off, is Dad right that Medicaid will take any inheritance my aunt receives?
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Is there any way to change the effect of the will so that Dad gets all the money and can use his sister’s share to take care of her? (With her consent, of course.)
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Can she renounce or give away the inheritance before the government has a claim to it?
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Can she opt out of Medicaid and pay her own bills with the inheritance? Depending on how long she lives, this might just put her back in the same situation in the end, but it also might enable her to afford a nicer place in the mean time.
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If she does opt out, can she return to Medicaid coverage the same way she did before she got the inheritance?
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Are there any other ways for us to keep as much money in the family as possible, instead of turning over hundreds of thousands to the gummint?
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Any other advice you can give me about this situation?
Thanks.