Legal Question in Credit and Debt Law in New York

Can Social Services take Life Insurance Inheritance

A friend of mine has been on Welfare Most of her adult life and has 2 small children. Her Father Just died, leaving her as a benificiary to his Life Insurace policy. Does she have to claim that money as ''income''. Can Social Services take it from her?


Asked on 2/25/04, 7:33 pm

1 Answer from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: Can Social Services take Life Insurance Inheritance

inheritance is not income. it is inheritance. Taxes on the funds are paid by the decedent's (dead person's) estate if they exceed $1 Million. (I think that's the cut off). If that's what we're talking about there would be no more welfare but I do NOT believe Social Service takes funds to replace past assistance...call THEM and find out. If she won the lottery it would be the same thing (though that is income) future funds would not be used to pay prior assistance...

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Answered on 2/27/04, 7:48 am


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