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-