• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

Your Lawyer through the Lifespan™  774-203-9003

  • Facebook
  • LinkedIn
  • Twitter

Walecka Law, P.C.

  • About
    • Events
    • Testimonials
  • Blog
  • Practice Areas
    • Estate Planning
    • Elder Law
    • Estate & Trust Administration
    • Estate Tax Planning
    • Long-Term Care Planning
    • Special Needs Planning
    • Guardians & Conservators
  • Estate Planning
  • Elder Law
  • Contact

Mobile Menu

  • About
    • Events
    • Testimonials
  • Blog
  • Practice Areas
    • Estate Planning
    • Elder Law
    • Estate & Trust Administration
    • Estate Tax Planning
    • Long-Term Care Planning
    • Special Needs Planning
    • Guardians & Conservators
  • Estate Planning
  • Elder Law
  • Contact

Schedule a Consultation!

Now is a great time to schedule your intial consultation with Attorney Brandon Walecka to discuss all of your estate planning needs. Please contact us today.

You are here: Home / Estate Planning & Trusts / How to Handle an Unexpected Inheritance

How to Handle an Unexpected Inheritance

September 18, 2021

image_pdfimage_print

By: Brandon C. Walecka, Esq.

Walecka Law, P.C.

774-203-9003

Brandon@WaleckaLaw.com

For most people, receiving an inheritance is something good, but for the elderly or a nursing home resident, an inheritance may not be as welcomed.  Medicaid (MassHealth in Massachusetts) has strict income and asset limits so an inheritance can suddenly and unexpectedly make the Medicaid recipient ineligible for benefits.  Careful planning is necessary to address this new money.  

An inheritance is considered income the month it is received.  If you are currently receiving benefits, you are obligated to notify the Medicaid agency of the receipt of these funds.  Your Medicaid coverage will typically end until such time as you are once again below the asset limit ($2,000 for a single person or $130,380 for a married couple).  

If it is possible to properly spend down this inheritance within the same month it is received, then you typically only lose one month of coverage.  If, however, you are unable to spend down the entire inheritance in one month, seeking the advice of a qualified elder law attorney can help advise you on the proper way to spend down the excess money.  There are several complex but effective strategies that may be available to allow you to preserve your benefits but still enjoy the benefit of your inheritance. 

What you cannot do is gift the newly received inheritance away (outside of very limited exceptions).  I meet with clients who reach out after-the-fact to let me know that they inherited money from a sibling or other relative and since they did not need the funds, they immediately gifted the funds to loved ones who did – they bought cars, helped pay mortgages, paid college tuition, or gifted elaborate vacations for family members.  These gifts, though generous, can have dramatic consequences to your future or continued eligibility.  

If you or a loved one inherited money, you should seek advice from a qualified elder law attorney today on how best to manage this situation.  

The information contained in this article is not intended to make you an expert on estate planning nor is this article intended to replace the need for the advice of a professional. Rather, this article is simply intended to provide a basic understanding of why estate planning is important for everybody and a basic understanding of some of the more common estate planning tools. This article does not constitute legal advice. 

Filed Under: Estate Planning & Trusts

Looking for immediate answers to your questions?

Schedule a consultation today!

Walecka Law, P.C. is an estate planning law firm to help with all of your estate planning and elder law needs.

You May Also Be Interested In:

Pause Before Signing That Health Care Proxy

We’re Hiring a Paralegal!

Estate Planning This Holiday Season

We Make House Calls!

Forbes Article: IRS Announces Estate And Gift Tax Exemption Amounts For 2023

An Estate Planning Warning For Married Massachusetts Residents Who Are Not US Citizens

Do Not Leave Healthcare Decisions to Chance

Have You Notified Your Homeowners Insurance Company About Your Irrevocable Trust?

What is a Declaration of Homestead Exemption?

Previous Post: « The Problem with Out-of-State Documents
Next Post: What If I Cannot Find the Original Will? »

Primary Sidebar

Schedule a Consultation!

Now is a great time to schedule your intial consultation with Attorney Brandon Walecka to discuss all of your estate planning needs. Please contact us today to get answers for your family.

GET STARTED

RECENT POSTS

Pause Before Signing That Health Care Proxy

By: Brandon C. Walecka, Esq. Walecka Law, …

We’re Hiring a Paralegal!

Job Description Paralegal needed for a growing solo- estate …

Estate Planning This Holiday Season

By: Brandon C. Walecka, Esq. Walecka Law, …

We Make House Calls!

Here at Walecka Law, we take pride in prioritizing our clients. …

Forbes Article: IRS Announces Estate And Gift Tax Exemption Amounts For 2023

By: Brandon C. Walecka, Esq. Walecka Law, …

Search

Our Popular Topics

Advocacy Durable Power of Attorney Elder Law Estate Planning & Trusts Firm News Gifting Health Care Directive Health Care Proxy HIPAA Authorization Last Will & Testament Long-term care Personal Directive Probate & Trust Administration Special Needs

Footer

Our Practice

  • About
  • Events
  • Blog
  • Practice Areas
  • Estate Planning
  • Elder Law
  • Contact

Our Law Office

Walecka Law, P.C.
774-203-9003

P.O. Box 50992.
New Bedford, MA 02745

Brandon@WaleckaLaw.com

Contact Us

Contact our office today. We are ready to help you. There is no better time than now.
Learn How →

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • About
  • Events
  • Blog
  • Practice Areas
  • Estate Planning
  • Elder Law
  • Contact

Site Footer

Walecka Law, P.C. is an estate planning law firm with expertise in Elder Law and Estate Planning. Please read our Disclaimer.

Copyright © 2023 · Walecka Law P.C.