How Will Lottery Winnings Affect Social Security DIsability

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Latest post 04-10-2012 3:40 AM by Taxagent. 15 replies.
  • 11-16-2011 12:11 PM

    • bellv
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    How Will Lottery Winnings Affect Social Security DIsability

    Hi,

    These are purely hypothetical questions.

    1) I'm one of the finalists in a million dollar lottery and I'm on Social Security Disability, Medicare, and Medicaid. If I win the million dollars,will I lose disability, medicare, and medicaid? I'm on alot of meds which cost over a few thousand monthly and the jackpot won't last me too long relatively if I lose my prescription benefits considering other expenses that I have.

    2) Can I transfer my winnings to my mother or other person to avoid losing my benefits?

    Thanks for any replies.

  • 11-16-2011 12:26 PM In reply to

    • Drew
      Consumer
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    • Joined on 03-30-2000
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    Re: How Will Lottery Winnings Affect Social Security DIsability

    If you are recieving means tested benefits then if you recieve a large sum that  most likely disqualifies you from same until the sum is spend down.

    If you give away funds  thats not a proper way to requalify for means tested benefits and its likley to get you further disqualified. .

    You might be able to game the ownership of the lottery ticket BEFORE you are locked into any winner status but for that you need somebody smarter than I may be.



  • 11-16-2011 12:46 PM In reply to

    Re: How Will Lottery Winnings Affect Social Security DIsability

    bellv:
    1) I'm one of the finalists in a million dollar lottery and I'm on Social Security Disability, Medicare, and Medicaid. If I win the million dollars,will I lose disability, medicare, and medicaid?

    Social Security disability and Medicare would not be affected. You'd lose Medicaid, however, until you've exhausted your winnings?

    bellv:
    2) Can I transfer my winnings to my mother or other person to avoid losing my benefits?

    Once you actually win (e.g. the state draws your ticket number as the winner), the transfer of the winning ticket or the cash from it to anyone else won't save you from having the winnings counted against you. Moreover, the transfer would be subject to federal gift tax.

  • 11-16-2011 1:01 PM In reply to

    • bellv
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    • NJ
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    Re: How Will Lottery Winnings Affect Social Security DIsability

    Taxagent, Thanks for your reply. So you're sure I'll lose Medicaid until my winnings are exhausted. I think you  meant a period not question mark after your statement? How do I have the winnings paid to another person and not me? I guess I can't have the state draw the winnings in someone else's name since I initiated the entry?

  • 11-16-2011 1:07 PM In reply to

    Re: How Will Lottery Winnings Affect Social Security DIsability

    bellv:
    How do I have the winnings paid to another person and not me? I guess I can't have the state draw the winnings in someone else's name since I initiated the entry?

     

    To do so in order to illegally keep benefits is Fraud and criminal.

    Not to mention that the "giftee" tends to keep the money and there is nothing you can do about it once putting it in another's name. 

    The taxpayers shouldn't support a lottery winner.

  • 11-16-2011 1:15 PM In reply to

    Re: How Will Lottery Winnings Affect Social Security DIsability

    bellv:
    Taxagent, Thanks for your reply. So you're sure I'll lose Medicaid until my winnings are exhausted. I think you  meant a period not question mark after your statement?

    Yes, I meant a period. Medicaid is a means tested program; that is your means (i.e. your assets and income) matter for determining your eligibility. Medicare is meant to help the poor pay for medical care and assistance. If you have millions in cash, the state isn't going to pay for expenses you can afford to pay yourself.

    bellv:
    How do I have the winnings paid to another person and not me? I guess I can't have the state draw the winnings in someone else's name since I initiated the entry?

    It matters what kind of lottery it is and where in the winning selection process it is. Once you know you are the winner, that's clearly too late for you to transfer it and not have it count against you.

    For example, take the basic lottery ticket game in which Amy buys a lottery ticket for $1 on 11/15/2011. The lottery office will conduct the lottery drawing for a $40 million jackpot on 11/20/2011. If Amy holds the ticket on 11/20/2011 and her ticket is declared the winner in the drawing, the moment her number is drawn as the winner it is too late to transfer it to someone else to avoid losing Medicare benefits. But had she given the ticket to her mother today, on 11/16/2011 before the drawing made the ticket a winner, she'd not have a problem.

  • 11-16-2011 1:55 PM In reply to

    Re: How Will Lottery Winnings Affect Social Security DIsability

    If you win this lottery you know longer will be poor and will obviously lose elgibility on Medicaid, which is tax payer funded. Why should you be eligible to receive this with a huge jackpot?

  • 11-16-2011 2:57 PM In reply to

    • bellv
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    • NJ
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    Re: How Will Lottery Winnings Affect Social Security DIsability

     taxagent,

    thanks for your replies. they have been helpful and i understand what you wrote. one more question if you don't mind.

    How can i legally keep medicaid if i win a million dollars?

    thanks again.

  • 11-16-2011 3:06 PM In reply to

    Re: How Will Lottery Winnings Affect Social Security DIsability

    bellv:
    How can i legally keep medicaid if i win a million dollars?

    You can't.  That is the bottom line.  Medicaid is a need based program and anyone with a million dollars in liquid assets does not need the assistance of a tax payer funded program.  You WILL be required to report the money and lose the benefit until such time as you no longer meet the income and qualify again.  

    Quite frankly it is HUGELY disrespectful and insulting to tax payers that you believe you should be allowed to win a sizable sum of money and still get free medical care instead of taking care of yourself.  If you hire a financial investor and handle the money carefully, planning for your medical care should stretch that money a lot farther rather than expecting everyone else to pay your way while you keep the funds to do with as you please.

     

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • 11-16-2011 4:21 PM In reply to

    • Drew
      Consumer
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    Re: How Will Lottery Winnings Affect Social Security DIsability

    You cannot do both--legally or morally-------

    Now if you lawfully gave away your ticket before you won--perhaps

    If you wildly spend down your money and wind up broke or with uncounted assets -you can reapply



  • 11-16-2011 4:59 PM In reply to

    Re: How Will Lottery Winnings Affect Social Security DIsability

    bellv:
    How can i legally keep medicaid if i win a million dollars?

    You can't. Medicaid is a program for the poor. If you have a million dollars, you are not poor and the taxpayers should not be footing the bill for your care.

  • 11-16-2011 6:22 PM In reply to

    • bellv
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    Re: How Will Lottery Winnings Affect Social Security DIsability

    ok thanks for your help taxagent and everyone else also.

  • 11-16-2011 6:39 PM In reply to

    Re: How Will Lottery Winnings Affect Social Security DIsability

    No offense but it is totally ridiculous for you to expect to keep Medicaid since you will be very wealthy on paper. Medicaid is for poor people and IMO there are far too many people on it and people just like you, looking to fraud the system who are not eligible. If they allow you to what would the point be in income restictions why couldn't a family that makes 100k a year go on it? You do not need any public assistance if you win and you should be cut off from all programs for at least several years I would think. You have more than enough money to buy your meds for a long time, or take out a private insurance policy.

  • 04-10-2012 2:23 AM In reply to

    Re: How Will Lottery Winnings Affect Social Security DIsability

     

    Dear Mr. Miller,

    On one hand, I agree with you that it would not be fair to continue to
    receive Medicare if you won a large lottery landfall prize.   However,
    on the other hand, what if a person won the 1 million dollars, paid 
    the 25-28% IRS tax and ended up with $700,000.00 or so in cash, but the
    insurance companies will not insure the person because of their
    pre-existing medical condition ???   The $700,000.00 could be gone in
    only ONE serious medical emergency !!!

    Most other countries of the world do not look at medical insurance the
    way we do (for profit only) and if you won a lottery prize in any of
    them, you would still get FREE medical insurance and still keep your
    lottery winnings.   This is a sign-of-the-times agenda that shows how
    greedy some people (mostly republicans) can be in the United States of
    America.  It also shows how uncaring and uncharitable we are, when it
    comes to the disabled.   A person who is able to work a full time job
    without physical difficulties sometimes takes their good health for
    granted and never gives a thought to how it would be if they were
    totally disabled;  unable to work and pay for food, shelter and all the
    many expenses that go along with living.

    In addition, if a disable person worked all of their life, until they
    became disabled, they have contributed every day they have worked to
    the SSDI fund.   This is THEIR money we are talking about here, not the
    taxpayer's money.  Just because some crooked politicians (from either
    side of the aisle) have been dipping into SS funds, in one corrupt way
    or another, does not mean that a disable or retired SS contributing
    person should be held responsible for the funds becoming low.

    The whole idea of SSDI, SSI and SS income was for the average worker to
    contribute small amounts to the fund, the government then would invest
    that money properly and when if the person became disabled or retired
    at the appropriate age, they would be SECURE in their financial social
    status  Thus the name of SOCIAL SECURITY was adopted for the system.

    Medicare is truly a taxpayer contributed insurance, but the DISABLED
    person was (and still is, in most cases) a contributing person to
    Medicare.  I know because i am on SSDI and I work 2 days a week at a
    business-baby-sitting job and the government takes out money to support
    my Medicare every week from my very small paycheck. Perhaps it would be
    fair for a lottery winning Medicare person to contribute more to
    Medicare, but to say they are not worthy of receiving it, frankly
    causes me to be insulted and angry.  We should ALL be supportive of
    each other's healthcare.

    The whole argument against UNIVERSAL HEALTH CARE is filled with LIE
    after LIE from those who oppose it !!!  I know all about the health
    care system in Canada, because I experienced it once, while visiting
    there, and I talk with my Canadian customers on a daily basis about it.
       I did not have to wait on medical assistance, did not have to pay one
    penny for it or the drugs they gave me and I have never had even ONE of
    my Canadian customers say they were dissatisfied with UNIVERSAL
    HEALTHCARE IN CANADA.

    The REAL TRUTH about why republicans reject UNIVERSAL HEALTH CARE is
    because of their investments into major insurance companies.  Insurance
    companies have ONLY one thing in mind; MAKING MONEY and lots of it. 
    They try everything they can possibly think of to NOT PAY A CLAIM, but
    will cancel a policy in a New York second, if a person is one day late
    on a premium payment, or if they can figure out a way to get out of
    paying a claim !!!  I know this to be true, because I worked for CIGNA
    before I became disabled and I can assure you that it was the most
    corrupt, deceiving and greedy organization I have ever worked for in my
    life !!!  There are plenty of true stories about insurance companies,
    that would make Satan himself blush, but I have experienced them FIRST
    HAND !!!

    I mention this only to indicate that if any of my disabled friends were
    to win a huge lottery windfall, I would be glad and honored to continue
    contributing to Medicare in their behalf !!!  WHY???  Because they ARE
    DISABLED and I know how it feels to be cast aside, ignored, made fun
    of, harassed, degraded, demeaned and run over because of it.

    TRULY WE SHOULD ALL LEARN FROM THE PEOPLE OF GREAT BRITAIN AND MOST
    OTHER COUNTRIES OF THE WORLD; OUR FELLOW CITIZEN'S HEALTH SHOULD BE
    EVERYONE'S RESPONSIBILITY, NO MATTER WHAT THEIR FINANCIAL SITUATION IS.


    Mr. Miller, if you became disabled, I would not mind contributing my tax dollars to
    help you, no matter how wealthy you are....or become !!!

    EDOFTENNESSEE

  • 04-10-2012 2:43 AM In reply to

    • DOCAR
      Lawyer
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    • Joined on 12-09-2000
    • NV
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    Re: How Will Lottery Winnings Affect Social Security DIsability

    You misunderstand.   If are on SSDI, Medicare and Medicaid (which is a very small number of people on all three) and you win the lottery, the only thing you lose is Medicaid (or Medical in California).  Of the three it is the only program restricted to the poor.

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