[WSBAPT] IRA Inheritance and Medicaid

[Paul Grant]

Hi All,

I have a client who is currently receiving highly discounted medical
assistance since she has minimal income (through Obama Care).  She recently
inherited an IRA and I have searched the WAC (for way too long) to try and
determine if a stretch-IRA asset will disqualify - I don't think so as it
should be income dependent.  I fully realize that the RMDs will count as
income each year, but those can be controlled.  Client is not elderly (in
40's) so I do not see that a spend down is required; she is deemed disabled
w SSDI.

Am I missing anything in assessing this issue?  I am trying to make sure
that taking a stretch will not interrupt her medical assistance other than
her future RMDs.  Other option is to cash out and take the one-time income
hit but it is more beneficial to use the stretch (not a massive IRA).

Thank you for any insight and thoughts.

Paul H. Grant - JD, LL.M

Planning with Purpose, Inc
Lynnwood, WA 98036
425-939-9948
www.planningwithpurposeinc.com

Estate Planning. Business Planning. Wealth Succession.
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