Legal Question in Wills and Trusts in New York

My daughter is on medicaid and is 23 years old. She is an alcoholic and has just started another job at a grocery store. She has not been able to pay her rent for more than a year, and has been using inheritance money she gifted me in January to support herself. The remainder of the inheritance money has just come through in a brokerage account, $25,000.00 (approx.) in stocks and $5,000 (approx.) in cash. The question is this: can she put the bulk of the money into annuities and keep her medicaid (which I believe she will need soon for rehab) or must it all be disclosed to social services or risk fraud? I don't want to do anything illegal, but would like to be able to preserve her money to use in the future-she is trying so hard and is so close to making the decisions that will change her life.


Asked on 5/13/10, 7:03 pm

1 Answer from Attorneys
Yana Feldman Melnik Law Group

When your daughter receives these assets, they are considered INCOME, and she is no longer illegible for Medicaid. If she purchases annuities, they would again generate INCOME, which could make her ineligible for Medicaid. If she doesn't report income, would be committing Medicaid fraud. That being said, there are planning techniques that she can use to protect these assets while maintaining her eligibility for Medicaid. You should consult an attorney that specializes in Medicaid planning.

Our office would be happy to speak to you about various options to preserve her assets and Medicaid coverage.

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Answered on 5/19/10, 6:22 am


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