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Yes, it “income” paid on the month the $ is received; and then becomes an “asset” for all months afterwards.

inheritances are reportable.
BUT
Just how they surface, to me kinda depends on the type of inheritance. Like if it’s a life insurance policy, the insurance co will ask for a W-9 & will send out a tax form for the year it was paid out. So if say $ paid to you in March, it may not surface for reportable till you get a 1099 in January of the incoming year. If it’s $ coming to you via probate, there will be a distribution order filed by the executor. Executor should ask everybody getting $ to fill out a W-9 & these get attached to the distribution order filed in probate court. If this is what happening, it’s likely a larger estate & Executor has a CPA filing 1099s on behalf of the estate. In theory any payments over $600 need 1099 filed.

if your state does annual Medicaid recertification, there will be a ? as to any inheritance paid to the Medicaid recipient. It has to be disclosed in the renewal/ recertification.

Inheritance will surface eventually & tied to your SS # & it’s just keystrokes for the state to do a match up. Medicaid does NOT allow you to turn down an inheritance; it will count whether you take it or not.

Maybe, just maybe, if this is still early in probate, the Executor has some degree of discretion as to when a distribution is done. Perhaps could put it off a bit to give you time to plan out how to deal with the $.
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Any money that a person has for whatever reason and from whatever source is an asset of theirs. Assets are considered. Yes, the inheritance this person received will have to be spent on this person before he or she is considered in need of governmental assistance.
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Yes, it will have to be reported. We just had a discussion on this same thing. It concerned about 11k. Medicaid will allowed prepaid funerals. I explained that 11k would be considered fair funeral costs. Besides the Funeral home expenses including the viewing, flowers, luncheon, grave stone, ect are part of the expenses. If its a large inheritance, the person will be taken off of Medicaid until the monies are spent down and you can reapply.

The only way a person can get around this is a Special Needs Trust. They have to be under 65 and disabled. The inheritance will be overseen by a trustee. There r only certain things it can be spent on. When the principle dies, the monies revert back to Medicaid. If there is any left after Medicaid recoups the money they put out for the person's care, the beneficiaries get the rest. The trust cannot be used for lodging, food or help with electric or heating since there is help for these things.
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