30 Jul What happens to my daughter’s Medicaid if I leave her my home?

Q. My daughter is on Medicaid. If I give her my home in my will, what will happen to her benefits?
— Mom

A. We’re glad to see you’re trying to plan ahead.

The answer will depend on the Medicaid program and what your daughter intends to do with the house.

“If the daughter receives Medicaid because she also receives SSI or has ABD Medicaid, the house will not be counted as a disqualifying asset if the house is the daughter’s principal place of residence,” said Shirley Whitenack, an estate planning attorney with Schenck, Price, Smith & King in Florham Park.

If she sells the house, however, the sale proceeds would be countable, Whitenack said.

If she is receiving expanded Medicaid through Obamacare, her eligibility would be based on income, she said. If she rented the house or sold the house, the income that would be generated could disqualify her from continuing to receive benefits, depending on the amount of income she receives, Whitenack said.

“If the daughter is disabled, the reader should consider leaving the daughter the house in a special needs trust,” she said. “This way, even if the house is sold, the sale proceeds would not disqualify her from receiving Medicaid.”

Good luck in your planning.

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This story was originally published on July 30, 2021.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.