Effect of Inheritance by Medicaid Recipient on Eligibility
A. Medicaid Recipient Becomes Beneficiary of an Estate
1. As previously indicated (see Post 27), property in probate is treated as an inaccessible resource. Therefore, merely acquiring the status of beneficiary would not render a Medicaid recipient ineligible.
2. Distribution of the inheritance would render the individual ineligible until the resource requirement was again met.
3. If the distribution is not made to the individual and the individual dies while receiving Medicaid benefits, the prospective inheritance becomes subject to the Medicaid lien as a probate asset.
4. A disclaimer by the potential Medicaid recipient is treated as a transfer and will result in ineligibility.
B. Inheritance by a Recipient of an Inaccessible Resource
1. One type of excludable resource is an inaccessible resource - N.J.A.C. 10:71-4.4(b) (6). Examples set forth in the regulations include “real property that cannot be sold because of the refusal of a co-owner to liquidate.”
2. Therefore, if upon the death of another, a Medicaid recipient becomes a co-tenant in a joint tenancy with right of survivorship or a tenancy in common, the property interest will not result in disqualification if the co-tenant refuses to liquidate. However, upon the death of the Medicaid recipient, the property will be subject to the lien to the extent of his “interest” at date of death.
Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© April 2009, Post #28