A Funeral Expense Trusts Offer Many Advantages

[jdeasy]

She is trying to commit Medicaid fraud. You don’t want to get tangled up with that. If they would have known ahead of the death to NOT make her the Benny, it would have been fine. But giving the money away so that WE the taxpayers have to pay for her needs when she has the money to pay it herself is a crime.

You posted while I was. That's exactly the question at hand.

 

[Tahoe Ray]

This may not be the section for this question but, since were on the subject, I will start here.

My client passed away last week. His common law wife, who is also my client, has already received $12,000 from one policy. She will receive an additional $100,000 from another policy. There is a 3rd policy that he had through his employer. The insurance company will not release any specifics, until they receive a death certificate. This includes releasing names of beneficiaries, coverage amount, etc.

Prior to him passing away, they lived together in Section 8 Housing.
She receives SSI due to her disability and will remain in that home.
If she reports this windfall, she will lose all government benefits. Her goddaughter is the only person remaining in her life that she feels she can trust. "Their plan" is to deposit the proceeds in the goddaughter's bank account to avoid losing these government benefits. In addition, they are agreeing to limit my client to a maximum of $600 per month allowance.

This morning, I expressed to my client that their plan a bad idea on multiple levels. She is open to alternatives.

The client is only 43 years young. I have observed signs that lead me to believe her disability is intellectual, or at least affects her ability to learn. She truly requires protection. She has never had the responsibility of managing large sums of money, and his could go bad for her in a hurry.

If income from an immediate annuity does not push her over the maximum allowed to continue receiving SSI, would this be the solution to these foreseeable problems?

Is there a contingent beneficiary? Is she the sole primary?

She could disclaim the death benefit and have the money go directly to the contingent.

In reality, she should accept the payout, use her money to pay for her housing/benefits, and then when it runs out go back on government assistance.

As JD and Newby said, no way would I want to get involved with this, especially if she has diminished mental capacity.

 

[titeye]

All of those responses were awesome! I never considered the fact that I could be an accessory.

 

[jdeasy]

All of those responses were awesome! I never considered the fact that I could be an accessory.

Reminds me of a saying, "I didn't say it was your fault, I said I was going to blame you!"