On Medicaid with stocks

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Forum -> Household Management -> Finances

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amother

Mon, Mar 18 2024, 8:46 am

We are very very low income but created stock accounts for our children and every year put the tax return money in there. The stocks did very well this year bli ayin hara.
When we sell, we will be way over the income limit (unless its different because they're kids, but I think its the same because its one household).
I assume we will then lose our gov benefits because we will temporarily be "rich."

Has anyone had this?

How easy is it to get back on to gov benefits after such a windfall?

Because the next year income will be back to so so low.

(anyone who is jealous, please don't be. We have mental health tzuros)

justforfun87

Mon, Mar 18 2024, 9:34 am

Don't sell! These should remain in your account for a very long time.

mommymama

Mon, Mar 18 2024, 9:38 am

wow that is so great! iyH you should continue to be matzliach and Hashem should bench you!!!

amother

Ghostwhite

Mon, Mar 18 2024, 9:43 am

I think it depends on your state; I live in New Jersey and can answer based on that.
New Jersey is income based only (not based on your assets). If next years tax return shows that you are eligible it shouldn't be any problem reapplying.
It only gets complicated if your current income is different than your most recent tax return (lost a job, or you own a business that is making a lot less money.) Then they want supporting documents to prove that.

If you are withdrawing income and it is going straight to healthcare (you mention mental health) you may be able to write it off and not include it as income on your tax return. I pay out of pocket for therapy and I am able to write it off.

amother

Magnolia

Mon, Mar 18 2024, 10:07 am

Whose names are on the accounts?

Are they guardianship or UGMA accounts?

RM3

Mon, Mar 18 2024, 10:20 am

There are solutions up to a certain amount. How much over the limit are you talking about?

Also, I’m realizing that I should clarify just in case you don’t realize the difference between realized and unrealized gains. Meaning, if the value went up but you didn’t sell, then it’s not considered like you made any money yet. Because it can just as easily go right back down. It’s only considered income if you sold it and locked in the gain.

amother

Latte

Mon, Mar 18 2024, 10:38 am

Talk to an accountant or someone knowledgable. We have lots of stocks and still qualify for medicade because we reinvest and its not take home money.

amother

Mon, Mar 18 2024, 2:54 pm

Thank you everyone for answering so graciously.

Yes, the money is sitting and growing and not an asset yet, but it eventually will need to be sold, and then there will be tremendous "income."

they kids have UTMA accounts.

I am not in NJ, but also in a state that officially only counts income, not assets.
Still they ask a question - are your assets are over a million.
Eventually they will be over a million iyh, which sounds like a huge bracha, but if we lose our gov benefits because of that, it won't be, because our income is way under poverty guidelines. We just happen to have invested a lot, but its money for our kids' future...

amother

Mon, Mar 18 2024, 2:55 pm

amother Latte wrote:

Talk to an accountant or someone knowledgable. We have lots of stocks and still qualify for medicade because we reinvest and its not take home money.

Our accountant doesn't know. Is that a specialty?
What other professional would know?

amother

Magnolia

Mon, Mar 18 2024, 3:01 pm

amother OP wrote:

I think the question is if Medicaid views the assets as yours, even if they are held in custodial accounts under your childrens' names.

amother

Magnolia

Mon, Mar 18 2024, 3:02 pm

amother OP wrote:

Our accountant doesn't know. Is that a specialty?
What other professional would know?

Are you in NY?

An elder law attorney who is familiar with Medicaid applications would probably be able to answer.

mha3484

Mon, Mar 18 2024, 3:03 pm

amother Magnolia wrote:

Are you in NY?

An elder law attorney who is familiar with Medicaid applications would probably be able to answer.

I second this. From someone who worked for an estate planning/elder law attorney.

amother

Indigo

Mon, Mar 18 2024, 3:04 pm

amother Magnolia wrote:

Are you in NY?

An elder law attorney who is familiar with Medicaid applications would probably be able to answer.

Yup.
They should be able to put them in your kids name, or in a trust...

amother

Mon, Mar 18 2024, 3:06 pm

Even though we're not elderly? Wink

mha3484

Mon, Mar 18 2024, 3:08 pm

They do other things. The attorney I worked for made special needs trusts, prenups, anything involving estates, trusts, assets, passing them down, protecting yourself. Its a wide field.

amother

Plum

Tue, Mar 19 2024, 6:24 am

sounds good op. just curious how many years did it take to accumulate so much money?

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