Legal Question in Wills and Trusts in California
My mother is disabled and living in a skilled nursing facility in California. She is on Social Security and medicare. Her cousin died and left her $14000.00. Since this is an inheritance, can she keep this money without reporting it to Social Security, and having them take it from her? She only gets $35.00 a month, so she could really use this money to live on, and she doesnt even have any burial arrangements prepaid for when the time comes. We really would like to find a way for her to keep this inheritance. THank you
1 Answer from Attorneys
It sounds as if your mother is receiving Medi-Cal benefits - California's Medicaid. She may also be receiving Supplemental Security Income. Both programs are needs based programs and your mother cannot have more than $2,000 in cash and still receive her full benefits. If she receives the the full $14,000, then she will most likely lose the Medi-Cal and SSI benefits so long as she retains that money.
She, or her trustee or agent, should use the funds in the month she receives it on exempt assets such as buying an irrevocable burial plan. She can own an irrevocable burial plan and it will not count against the $2,000 in resources. Another option is to petition the court to have the funds placed in a special needs trust. This can be costly and may not be the best option.
Your mother or her trustee or agent should meet with an attorney who specializes in Medi-Cal planning to discuss all of her options.
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