Issues to Consider When a Disabled Individual Under Age 59 Seeks Medicaid Eligibility

Often an individual becomes disabled early in life. For Medicaid purposes, a (d)(4)(A) trust for the benefit of the individual is a method of establishing an excludable resource so long as the state is the remainderman.

Another salient point is the fact that the individual will generally be receiving disability income payments. Unfortunately, such continuing payments help defray Medicaid's cost and reduce the Medicaid reimbursement rate, and therefore, do not serve to benefit the individual.

Depending upon the nature of the individual's disability, it is extremely important that there be a power of attorney for the individual so that assets can be accessed if the individual becomes incompetent.

As discussed in Post 21, as with any person qualifying for Medicaid, it is extremely important that the will or non probate assets of another not pass to the disabled individual, which would render the person ineligible for Medicaid.

Also, keep in mind that as with any other Medicaid recipient, if the "disabled child" owns property jointly with another, the property is an "inaccessible resource", which would render the property protected. If the disabled child is not a family member seeking Medicaid, Post 42 discusses the fact that transfers to the disabled child are exempt.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© February 2011, Post 136