I have $50K from insurance proceeds but I'm on SSI/Medicaid, what should I do??
March 6, 2007 8:23 AM Subscribe
What can I do to continue recieivng SSI and Medicaid benefits if I received a lump sum insurance proceeds?
posted by pikaboy202 to Law & Government (11 answers total) 2 users marked this as a favorite
I know someone who's elderly and disabled. She is receiving SSI benefits and is on Medicaid. Recently, her husband was involved in an auto accident and he died. The other person involved was wrong and their insurance company paid out a wrongful death benefit to the wife in the amount of $50K.
She has the check but hasn't cashed it yet because she's afraid that it'll make her lose her SSI and/or Medicaid benefits.
I know of 2 options: spend down the money or put it into a "pooled trust." I know the drawbacks of a pooled trust is that you have no control over the dispursement of funds and also, after the death of the wife, the funds are used to payback medicaid.
My questions to the hive are:
1. If she spends down, what would be the best ways to spend down the funds? What should she do with the money to maximize usage (either for her or her beneficiaries when she dies) and also not jeopardize her SSI or medicaid benefits?
2. Would the pooled trust be a better option?
3. Are there any other ingenious ways to shield the $50K?