If my adult son receives a small inheritance ($10,000 or less) how will Medicaid track that asset?

Does he collect SSDisability? You maybe able to set up a Special Needs acct. Medicaid does allow you to have some income. If he has a caseworker I would run the question past them.

To my understanding if he is in a facility, that money will have to go to pay for his care. If he is not in a facility, you will most likely have to open a Miller or Qualified Income Trust and deposit the money in there to also be used for his care. You may want to contact your local Medicaid office and ask them how to handle it.