How do I leave money to a disabled loved one without jeopardizing eligibility for government benefits?
If you are providing care for a child or other person with a disability, you’ve no doubt thought about what will happen when you’re no longer around. Of course you can leave that person property — but doing so without some careful planning will almost certainly jeopardize your loved one’s ability to receive Supplemental Security Income (SSI) and Medicaid benefits. An inheritance will disrupt these benefits because SSI is available only to the financially needy — and eligibility for Medicaid, in most states, is based on eligibility for SSI. Owning a house, a car, furnishings, and normal personal effects does not affect eligibility for SSI or Medicaid. But other assets, including cash in the bank, will disqualify your loved one from benefits. For example, if you leave your loved one $5,000 in cash, he or she won’t be able to get SSI or Medicaid.
