Does PA Medicaid,etc get reimbursed from inheritances?

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Latest post 04-12-2010 11:00 AM by Securet Trust. 4 replies.
  • 01-22-2010 9:53 AM

    • therex10
      Consumer
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    • Joined on 12-17-2009
    • PA
    • Posts 7

    Does PA Medicaid,etc get reimbursed from inheritances?

    PA

    My sister in law is going to receive a sizable inheritance from her father's estate (no trust & this is an unintended inheritance due to intestate laws). We were told that she would have to pay back both medicaid and welfare (food stamps, etc) out of this inheritance since she has been on it most of her life. This inheritance is about $125,000. She has had medicaid & welfare pay out at least double or triple(or more) this over the years on her behalf.

    Apparently when you apply for benefits- you sign a waiver to pay them back if you ever receive a sizable settlement or amount of money. We have tried to explain this to her based on the information we have heard but she does not want to believe us.She feels they will allow her to keep all of the money as well as all of her benefits & she can somehow 'hide' the money from all of them & spend it fast (as in 1 month) or put it in her mother's name.

    1. Does she have to pay back medicaid for medical bills paid on her behalf and if so- how much?

    2. Does she have to pay back welfare for benefits received such as energy assistance, food stamps, etc) and if so- how much?

    3. Can she 'hide' this money like she thinks? Can she go to jail for fraud if she tries to hide it with another?

    4. Will she be thrown off the SSI system and have to reapply if she takes this money?

    If you tell me anything else regarding this subject-please do so-

    thanks,therex10

  • 01-22-2010 2:06 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,323

    Re: Does PA Medicaid,etc get reimbursed from inheritances?

    Laymans take:

    You are generally correct, 

    If she gets  $125,000 a number of the public agencies that provided her with  aid are entitled to thier money back)

    If she engages in a scheme to hide money or falsify reqwuired returns she could well get tossed from need based programs and/or get hit with sanctions for fraud or even criminal conduct.

    Now if executor hands her a check for $125,000 and she blows it at Sands Casino that afternoon agencies  may be hard to get blood out of a stone and the welfare mentality administrators probably will not toss her out in cold  especially if there are kids.

    Caution--I think there is a quirk in PA inheritance law designed to slwo down this kind of cheating just a bit--it may require executor to notify some series of agencies and if executor fails to do so the executo has the fun of chansing down Sis for the money or making good---now it may not be there but I sure think I saw something like that.

     

    Now in days past it was easy to end run--and a simple timely disclaimer by Sis took her out of loop and it passed to next in line as per intestacy rules  (but if Sis is planning to go blow it I doubt she understands a disclaimer either and won't use the door even if door still exists. )

     



  • 01-25-2010 7:05 PM In reply to

    Re: Does PA Medicaid,etc get reimbursed from inheritances?

    Your sister in law may disclaim the inheritance.  It would go to other beneficiaries if she did. Later, they could buy her a few things.  "Hide?" You are correct, fraud is the better word.

    HatTrick

  • 01-25-2010 9:05 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,323

    Re: Does PA Medicaid,etc get reimbursed from inheritances?

    I may have my wires crossed--executor may need to notify Pa Dept of Welfare  just in case decedant got benefits but no such notice may apply as to heirs. Cite below.

    I repeat, check out making a timely disclaimer.  To hide it is likley fraud

    " Whether the decedent received medical assistance after August 15, 1994; if so, whether the Department of Public Welfare has been given notice in accordance with the provisions of 62 Pa.C.S.A. § 1412."

     

     

     



  • 04-12-2010 11:00 AM In reply to

    Re: Does PA Medicaid,etc get reimbursed from inheritances?

    Try setting up a Special Needs Trust for her.  She can continue to receive her benefits and not give away the money.  www.securettrust.org 

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