What will happen if my 87 year old mother lives in an assisted living facility and receives an inheritance?

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What will happen if my 87 year old mother lives in an assisted living facility and receives an inheritance?

All her expenses are paid by Medicaid and Medicare. Soon she will be inheriting about $80,000 from her sister. Will the state keep all of it to pay for her living expenses? Will she be able to keep anything?

Asked on June 22, 2013 under Estate Planning, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If she is inheriting this money, absolutely the agencies can take that money. That is why many transfer properties to their beneficiaries so that this doesn't happen. Of course, you run into issues when you transfer (potentiality of problems with the siblings fighting each other for control and so forth) but you may wish to discuss the inheritance before it comes into fruition and see if there is a way to place it in trust for someone else.


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