Legal Question in Wills and Trusts in California
foreign inheritance
My father depends on his social security, medicare/mediCal benefits and receives rent assistance through some Housing Agency. He recently received notification that he is a beneficiary to a will from his recently deseased sister who lives in South America. (My father is a US citizen but was born in S. America). He is talking to the South American attorney handling the will to consider transfering any money to his 3 adult children - so as not to jeopardize his SSI, Medicare/Medical and Housing benefits.
My siblings and I would inturn, be forwarded this money to our accounts here in the US (California)where we reside. Are there any legal and tax ramifications for us children receiving this money? I don't expect it will be more than $100,000 total.
1 Answer from Attorneys
Re: foreign inheritance
this is a complex and uncertain area of tax planning. even if under local law (in South America) it is possible for your father to "disclaim" his inheritance as that term is defined under US federal law, and even if the beneficiaries (in the event of a disclaimer) under the will would be the adult children, it is not clear whether or not the inheritance would be counted in his asset base for Medicare purposes. it appears that it would be counted for SSI purposes.
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