On the contrary, I think he is trying to abide by the law but doesn't know what to do. If he or the disabled friend wanted to be dishonest, s/he wouldn't have asked us. I'd also be concerned about messing up her friend's eligibility for government benefits since it could take months for the friend to re-gain them. And no-one likes to do the required paperwork.Seems like he is attempting to commit fraud and has made his intent to do so known.
A Special Needs trust is probably needed. I'm the trustee for a person on Medicaid who would lose benefits if she had over $2,000 in her account (that is controlled by her guardian).
But our trust has restrictions on what the money can be spent on: Housing, Education, Medical, and Support services (the well-known HEMS limitations). The trust also can't pay for anything a government program would cover. And a tax return for the trust might be required if the money is invested and grows.
Since the money isn't that much, if you are willing, you could hold onto it and spend it on something she needs, like clothes, or repairs on a car or her house, if she has one. But do not give her cash or a check.
Legal counsel is probably needed here.
Statistics: Posted by celia — Wed Sep 25, 2024 7:51 pm — Replies 15 — Views 756