Q: If I am on Medicaid and I receive and inheritance will Medicaid take the inheritance for past services they have paid?

A: No, Medicaid will not take it, but as you are aware, the inheritance will render you ineligible for Medicaid, very generally to the extent of the amount of the inheritance. With a little bit of planning, however, it is possible the receive the benefit of the inheritance while remaining on Medicaid. A special needs trust can be established into which the funds are transferred, or the funds could be transferred into an account in an established pooled trust without causing you to be disqualified. The trustee would then spend the funds on those things not covered by Medicaid. I am over-simplifying the nature of these trusts, but the point is that you get the best of both worlds. This is a very complex area of the law and it will take time to set up the proper trust to catch the inheritance. Don’t delay.