What to do if someone on Medicaid inherits money or receives money

Attorney Dan Krause discusses what can be done if a person on Medicaid receives an inheritance or other money. Because an inheritance can give a Medicaid recipient too much money, they may be thrown off of Medicaid. In order to prevent this, the inheritance may be spent on the person who is receiving the inheritance. Things that can be purchased include: prepaid funeral arrangements, a new car to replace an older car the person already had, furniture, house addition or remodel. Also, a person may create a subtrust under a pooled Special Needs Trust like the ones they administer at Wispact in Wisconsin. The inheritance can be deposited there, then used for supplemental needs of the Medicaid recipient. It is important to remember that the inheriting person may NOT give away any of the inheritance, or their Medicaid will be suspended as a penalty.