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Grandparents are denied Medicaid due to inheritance from family member.


What happens when their money runs out? (they don't own a home or car any longer, basically only asset is the inheritance money they have in a bank.)


I know about the 5 yr look back, but what happens if no one can pay for their assisted living?

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Question about gifting. Does this mean no more birthday or Christmas gifts for kids and grandkids? I'm talking small amounts of $100 or less.
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mstrbill Jan 2020
No, Medicaid case workers will generally only flag large transfers or withdrawls when they look at the bank statements.
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All they need to do is spend that inheritance money on their care. Then they will be under the threshold to be approved for Medicaid. If I'm misunderstanding you and they already gave that money away to someone then they won't be approved for Medicaid until the assigned penalty period is over. Penalty period is determined by a formula based on cost of care and amount gifted.
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Married couple limit would be $3000, not $2000. $2000 is for a single person. But there are more sophisticated ways to handle the funds and become eligible sooner than having to spend down to the $3000 limit. I just went to a seminar on this last night. Find a qualified Medicaid senior law advisor for good advice that is CV relevant to their state
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Once they are down to $2,000 they will meet the financial criteria for Medicaid.

so...spend it on their care. Tell them..do not make any gifts to anyone as that will cause them to not qualify when the money runs out
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worriedinCali Jan 2020
Wrong. $2,000 is the limit for a single person in some states, some states have a lower limit, some like NY have a much higher limit. The limit for married couples is higher, usually $4K.
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Once they spend down the inheritance on the nursing home they reapply for Medicaid. Do not give that inheritance to anyone else. That will not help as they would be penalized by Medicaid an amount equal to what was given away that they would have to self pay for nursing home. Make sure it is a nursing home that will accept Medicaid so they do not need to move again.
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