Dear Liz: I live on Social Security alone, which puts me at the poverty level. The state pays for medical and dental premiums, so I have no copay for doctor visits or prescriptions. I was just notified that I was left $175,000. If this shows up in my bank account, I will lose all the medical benefits I’m receiving. My medications total $80,000 a year. I’d like to at least have some access to the funds to make some home repairs that I’ve needed for 20 years and to prepay my future funeral expenses.
Answer: Inheritances can wreak havoc with government benefits such as Medicaid (called Medi-Cal in California), which have strict income and asset limits. But you may have options to put the money in trust, says Jennifer Sawday, an estate planning attorney in Long Beach. Consult a special needs trust planning attorney for details.
Thank you Liz, I’d love to enter for the book drawing! I used to read your weekly colum in the LAT and since moving to Georgia (don’t ever do it) I love reading your on-line column!
Hi, Fran! Glad you’re enjoying the column. I haven’t done book giveaways for quite awhile now. If you can remember where you saw that on my site, let me know and I’ll delete it!
The OP should consider a Medicare Advantage plan that covers dental and vision.
MA plans might be okay if you’re healthy and remain that way. Not sure someone with an $80k pharmacy tab would qualify.
Funeral trusts up to a modest amount are not counted as assets for Medicaid.