I don't want my inheritance!!

[deeliv]

What is the name of your state (only U.S. law)? Oregon...My birth father died a few years ago, his home was left to me and my 2 sisters, but his girlfriend was given the right to live there until she died or went to a nursing home. She is now in a nursing home and we must sell the place. It is only worth about 47K, divided 3 ways, so by the time it is all said and done, this money will only cause me to lose all my state assistance benefits. No medical for the kids, no food stamps, no school lunches etc. My eldest sister wanted me to travel with her over 1k miles to try to get more money for it, but I have 5 kids and no money to travel, so I told her I would rather just sign off my portion so she wouldn't feel the need to try and hold onto it to get more, she agreed, but then I started reading things that say you have to disclaim your inheritance within 9 months oof the persons death in order to not be taxed for it. How do I get out from under this? It will cause my family more harm than good at this moment. Thank you

 

[xylene]

What is the name of your state (only U.S. law)? Oregon...My birth father died a few years ago, his home was left to me and my 2 sisters, but his girlfriend was given the right to live there until she died or went to a nursing home. She is now in a nursing home and we must sell the place. It is only worth about 47K, divided 3 ways, so by the time it is all said and done, this money will only cause me to lose all my state assistance benefits. No medical for the kids, no food stamps, no school lunches etc. My eldest sister wanted me to travel with her over 1k miles to try to get more money for it, but I have 5 kids and no money to travel, so I told her I would rather just sign off my portion so she wouldn't feel the need to try and hold onto it to get more, she agreed, but then I started reading things that say you have to disclaim your inheritance within 9 months oof the persons death in order to not be taxed for it. How do I get out from under this? It will cause my family more harm than good at this moment. Thank you

An inheritance is not income.

 

[truthandhonor]

This is precicely what a "Special Needs Trust" is to be used for. A Special Needs Trust, aka Supplemental Needs Trust, can be set up, even self funded, so you do not lose your governmental benefits. The moniess in the trust does not count against you as income!

A third party, such as a parent leaving an inheritance, can have it set up ahead of time. But one can also SELF FUND a Special Needs Trust yourself and as he aleady passed, you may be able to do this. Do consult with a qualified lawyer along these lines.

In a SNT, you can keep your inheritance "held" in trust by a trustee who pays out on your behalf things that are not covered by your SSI or Medicaide. Do make certain that the trustee is TRUSTWORTHY and won't rob you blind of your rightful portion and is committed to doing the tright thing. You do not have to give up your benefits. Otherwise, I believe you would have to spend it down. Contact an attorney versed specifically in SNTs. You're Dad wanted you to have something, thank God for him. It should be a blessing and not a curse.

Best wishes.

 

[xylene]

This is precicely what a "Special Needs Trust" is to be used for. A Special Needs Trust, aka Supplemental Needs Trust, can be set up, even self funded, so you do not lose your governmental benefits. The moniess in the trust does not count against you as income!

A third party, such as a parent leaving an inheritance, can have it set up ahead of time. But one can also SELF FUND a Special Needs Trust yourself and as he aleady passed, you may be able to do this. Do consult with a qualified lawyer along these lines.

In a SNT, you can keep your inheritance "held" in trust by a trustee who pays out on your behalf things that are not covered by your SSI or Medicaide. Do make certain that the trustee is TRUSTWORTHY and won't rob you blind of your rightful portion and is committed to doing the tright thing. You do not have to give up your benefits. Otherwise, I believe you would have to spend it down. Contact an attorney versed specifically in SNTs. You're Dad wanted you to have something, thank God for him. It should be a blessing and not a curse.

Best wishes.

This poster HAS ALREADY inherited.

The liquidation of the house is NOT income.

 

[Dandy Don]

Also need to be inquring about perhaps signing your rights away to someone else through a quitclaim deed and/or a declination form if the SNT doesn't happen.

 

[truthandhonor]

If money is coming her way in any regard, I believe the poster can still self-fund her SNT hopefully with a trustworthy trustee at the helm... Someone who will not charge you to administer it would be best since it seems like not that much money to begin with.

Still, you'd need a SNT lawyer to draft it anyway. Might as well try. Also, if you were to live in the house, I bet it will not count either against SSI. Check with the SSA. Perhaps the combination of quitclaim deed and SNT.

 

[truthandhonor]

BTW, Xlene...

The money coming her way, while not income, does count against her being qualified to recieve her SSI/Medicaide. That is the issue here.A person on SSI and/or Medicaide cannot have anymore than $2,000 in holdings otherwise they will cut her off. If they do that, it means she also loses her medical insurance through Medicaide. I am no expert, just a poster interested in leanring all I can...but I beieve she can shelter her inheritance legally by means of a SNT. While it wasn;t set up for her before her Dad died, a well-versed lawyer of SNT and SSI Law may be able to draft one via a "First Party SNT" which is SELF-FUNDED.
Check it out.