What to do with a very small inheritance? Low-income complications.
August 26, 2011 4:35 PM Subscribe
What to do with a very small inheritance? Low-income complications.
I'm in my 40s, intermittently employed part-time over the past several years. Social Security Disability Income (SSDI) is my primary source of income, covering rent in a very decent apartment, utilities, food and transport.
A parent's death last year left me with about $10k, with the remaining $6.5k now in a money market account at my credit union. I recently received a notice from my county's Estate Recovery Unit stating that, since the parent had been on Medical Assistance, the county is entitled to all of the deceased's assets (minus allowances for funeral expenses and insurance payouts with a named beneficiary, which together did not amount to much of the original total in this case) up to the full amount paid out in the person's lifetime, which in my parent's case will have been considerable.
The original claim letter (from June) threatened to summon me to court if not responded to. I've received an extension to the response deadline, but apparently it's too late to file a request for any kind of waiver. Can anyone provide some context for this Estate Recovery Program targeting surviving family members of the low-income deceased? Inquiries to county staff and a bit of internet research have not yielded much useful info so far. Informative links would be great.
If, after all is said and done, I am able to hang on to some significant portion of the remaining $6.5k, where is a good place to put it, in these circumstances? It isn't enough to be dramatically life-changing, but I'd like not to fritter it away month-to-month, and instead save whatever remains (if anything) for a few medium-sized, carefully chosen quality-of-life improvements spread out over several years. Again, it's now in a money market account at my credit union. Is there a better place for it, in terms of interest plus availability, with this all in mind? Short- and medium-term CDs don't seem to yield much better interest, and having access to the money on short notice without major penalties is important too, in case of emergency.
Thanks.
I'm in my 40s, intermittently employed part-time over the past several years. Social Security Disability Income (SSDI) is my primary source of income, covering rent in a very decent apartment, utilities, food and transport.
A parent's death last year left me with about $10k, with the remaining $6.5k now in a money market account at my credit union. I recently received a notice from my county's Estate Recovery Unit stating that, since the parent had been on Medical Assistance, the county is entitled to all of the deceased's assets (minus allowances for funeral expenses and insurance payouts with a named beneficiary, which together did not amount to much of the original total in this case) up to the full amount paid out in the person's lifetime, which in my parent's case will have been considerable.
The original claim letter (from June) threatened to summon me to court if not responded to. I've received an extension to the response deadline, but apparently it's too late to file a request for any kind of waiver. Can anyone provide some context for this Estate Recovery Program targeting surviving family members of the low-income deceased? Inquiries to county staff and a bit of internet research have not yielded much useful info so far. Informative links would be great.
If, after all is said and done, I am able to hang on to some significant portion of the remaining $6.5k, where is a good place to put it, in these circumstances? It isn't enough to be dramatically life-changing, but I'd like not to fritter it away month-to-month, and instead save whatever remains (if anything) for a few medium-sized, carefully chosen quality-of-life improvements spread out over several years. Again, it's now in a money market account at my credit union. Is there a better place for it, in terms of interest plus availability, with this all in mind? Short- and medium-term CDs don't seem to yield much better interest, and having access to the money on short notice without major penalties is important too, in case of emergency.
Thanks.
Just wanted to double check that you get SSDI (based on what you paid into SS over the years) and not SSI (Supplemental Security Income) which is based on need as well as disability. If you are on SSI, you will lose benefits for the month you got the inheritance plus you fail the asset test. In this case, the money will probably cause more trouble than it is worth. However, an inheritance will not cuase any problems if you really are on SSDI.
My second (equally cheerful thought) is that you will want to keep the money in the money market account (DO NOT SPEND) until you know for sure that the county has given up their claim - if they win, they will be very persistent about getting their money back. This is a completely amateur opinion but from your description it sounds like they have a pretty solid case.
posted by metahawk at 6:13 PM on August 26, 2011
My second (equally cheerful thought) is that you will want to keep the money in the money market account (DO NOT SPEND) until you know for sure that the county has given up their claim - if they win, they will be very persistent about getting their money back. This is a completely amateur opinion but from your description it sounds like they have a pretty solid case.
posted by metahawk at 6:13 PM on August 26, 2011
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posted by treehorn+bunny at 7:09 PM on August 26, 2011 [1 favorite]
posted by treehorn+bunny at 7:09 PM on August 26, 2011 [1 favorite]
You need to speak to a civil legal aid lawyer in your jurisdiction to find out whether the county is actually entitled to take the money, and whether you should/can fight to keep it. If you could have a mod post your location, we might be able to help you figure out how to find an attorney who can help you.
posted by decathecting at 8:20 PM on August 26, 2011 [1 favorite]
posted by decathecting at 8:20 PM on August 26, 2011 [1 favorite]
Is there a legal clinic nearby? It's not exactly the same situation, but when I sued (and won) a case relating to an injury, my health insurance company came after me to be paid back for everything they'd paid out on my behalf (talk about a foolproof business, you get all the premiums AND you get paid back if you have to actually pay out!). My lawyer negotiated with them and I didn't have to pay the whole amount. It's worth a shot, anyway!
posted by bitter-girl.com at 3:16 PM on August 27, 2011
posted by bitter-girl.com at 3:16 PM on August 27, 2011
This thread is closed to new comments.
posted by waldo at 6:03 PM on August 26, 2011