Legal Question in Wills and Trusts in New York
Inheritance & Medicaid
My grandmother passed away two years ago. She was
residing in a nursing home with medicaid paying for
her care. My family was recently contacted regarding a
bank account she had that has since become dormant.
My question is, will the state be able to take this money
since she was on medicaid? We're not even sure
where this money came from or how much it is. It may
have been from an inheritance when her sister passed
away. But if this was the case, wouldn't they have
stopped her medicaid benefits or used the money?
Thank you.
2 Answers from Attorneys
Re: Inheritance & Medicaid
Chances are that no one knew about the account, or that it was part of the exempt money she was allowed to keep and still be eligible for Medicaid(the current amount is $3,950). Either way, if she received Medicaid in New York, the state has the right to recover any assets left in her estate, up to the full amount of benefits she received. If you were to open up an estate for her, the Department of Social Services will file a claim seeking recovery, and will get paid back before anyone else gets anything.
Re: Inheritance & Medicaid
The answer depends upon how much money is in the account. Generally, Medicaid allowed a recipient to have a maximum of $2,000 of assets without losing eligibility. Presumably, if no claim was asserted, the account is worth $2,000 or less. It may have been an accumulation from her social security contribution to the nursing home cost, which allowed her a monthly portion of about $40 for personal needs, with an account being maintained by the nursing home. If the account has a balance more than $2,000, there is probably a Medicaid lien against the excess. Hope this answers your questions.
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