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Inheriting Money from Parents?

My son has POA for me. My mother died and left me 12,000. Is this going to affect my income?

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Gold Post Medal for All Time! 677 Posts
November 30, 20180 found this helpful

The $12,000 will not count as income. If you invest it, any dividends or interest will count as income.

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Gold Feedback Medal for All Time! 949 Feedbacks
November 30, 20180 found this helpful

$12,000, whether received as an inheritance (maybe from an estate) or received from an insurance policy will not be taxable.

You state that your son has POA so if he presently has control of your finances/money then he will also have control of the $12,000.

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Also, if you are living in any kind of state/government assisted housing that a monthly cost is based on income then this money could effect how much you are required to pay each month.

If you are receiving any kind of government assistance (Medicaid, food stamps, etc.) then you are supposed to report this money and that may effect the amount of assistance you receive each month. Mandatory reporting of income like this is stated in the papers you sign to receive this help.

If you are concerned about Social Security benefits then no, this will not affect your monthly check.

It would probably be best if you and your son had a discussion about what will be done with this $12,000 so you will feel at ease about how it is going to be used.

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Bronze Feedback Medal for All Time! 196 Feedbacks
November 30, 20180 found this helpful

Affect your income for what purpose?

Taxes?

Qualifying for Medical Assistance or Marketplace insurance?

As an asset that could be seized if you go into a nursing home?

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Another reason?

If it is for taxes, you will need to talk to the person who does your taxes and is familiar with your state's tax laws for inheritance vs estate taxes. If you don't have someone, I suggest finding a good tax person because how money is left to people can affect your taxes.

It can also affect things if you are trying to qualify for Medical Assistance or Affordable Health Care Insurance (Marketplace health insurance through the .gov site). This I know for a fact in my state as we are dealing with a family member who lost his tax credit when he inherited money that was counted toward his income.

If you are asking because of income that could affect your stay at a nursing home (or be seized as income by the nursing home) you will need to talk to an elder care lawyer about this.

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When we have dealt with POA for family members, it meant that we acted as the person (to pay bills, deposit and withdraw from banks etc.), but that was how it was written.

You will need to talk to the lawyer who drew up your POA to know what your son can and can't do as you...and if that means he can get to the money you were left.

If you DO NOT want him to have access to that money, you will need to talk to your lawyer to see if that can be stipulated. You will also want your will to stipulate what happens to that money when you pass if you are concerned about what will happen to it.

There are trusts and such that can be set up by lawyers so that your wishes can be strongly enforced. Those things aren't cheap, but if you have wishes you want followed, it can give you piece of mind.

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Any one of these scenarios is serious and should only be answered and resolved by professionals (accountants, tax preparer and/or a lawyer.

Wishing you all the best and sending up prayers that you can find the answers and solutions you need.

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