Hi,
I am 60, disabled since 1997, on SSD, Medicare, Tennessee Medicaid and Food Stamps.
My brother here passed from Covid in March 2022. He owned a home here that was in very bad shape. Because he was not married, and had no will, my 2 brothers and I hired a lawyer to handle the probate on his estate. I became administrator of his estate because I am the only one in TN. They both live 1000 miles away.
We sold the house for 43k and after lawyer fees, realtor commission and a few small debts, we should each get about 10k each.
I have a large credit card debt, 11k, and planned to pay that off with my share.
I know I have to spend down the inheritance per Medicaid and will lose my Medicaid till the money is gone.
I asked our probate lawyer if I could pay off my credit card immediately upon receipt of the funds, and send DHS receipts of everything so I only lose 1 month of Medicaid. She said I needed to hire an attorney and ask the attorney. I asked if I could hire her and she said she only does probate. I live in a rural area and am bedridden 22/7. I tried to find an Elder Law attorney in my area there are none. Estate attorneys say I have to go to the big city an hour away.
My question is this.
If I spend down all of the inheritance by paying off my credit card the day after the check is cut, report it to DHS immediately and send them copies of the whole transaction, will I have to reapply for Medicaid all over after 1 month? Will the 5 year look back cause me to be denied? I have no receipts of what I used the credit card for. (Mostly food, paper products and toiletries over 8 years).
I am a wreck. My SSD check is less than $1000.00 a month and I get $130.00 in food stamps. I have a mortgage, utilities, wifi and cable. The rest goes to my credit card. I just want to get this debt off my back, but have many chronic conditions and losing Medicaid even for 1 month will effect my health.
I have thought about just letting my 2 brothers split my share but read I cannot refuse my share of the inheritance or I will lose my Medicaid.
I was just wondering if anyone had been through this and could offer any advice. I don't drive and getting to the city is difficult. Plus attorneys want payment right away and all I have is my credit card.
Thank you in advance for any help.
As an administrator of an estate or executor of an estate, you have a-lot of legal authority as to just what happens and when. That atty can split the $ for 2022 & 2023 easily. You - as the administrator - tell the atty this is what is going to be done. Atty needs your cooperation to settle the estate; they have to work with you. Use your power!
Since you may not need to report the 10k on your taxes because its an inheritance, I may not worry about it. 10k is a small amt, IMO, to screw up ur Medicaid. I received 3k from Moms estate. Lawyer did not tell me I needed to do a 1099 for each of the beneficiaries. No 1099, the government doesn't know about it.
Like I said, with heath insurance ur allowed a certain amount of money in savings. Medicaid for health is income based. Look up and see what you are allowed yearly as a single person.
Do not confuse Medicaid for health insurance with Medicaid for in home care and NH care. Two different criteria. People work and get Medicaid health insurance.
If you use this money to pay off ur cards it should not effect the lookback. Your money making a payment on your card.
One thing u could use the money for is to prepay your funeral. Medicaid allows for this.
No in home care. Not in nursing home.
It says on the Medicaid site credit card debt is an allowable "spend down".
I'm afraid they will want receipts for everything I used the credit card for. I don't have them as most were groceries and stuff like that.
I don't have a case worker because our DHS has no staff. We have to call 1-800# in Nashville and hold times can be hours and workers are different everytime you call. They are rude and short and hard to deal with.
Thankyou so much.