The Short Answer

In Pennsylvania, receiving an inheritance can put your SSI and Medicaid eligibility at risk because inherited money or property may be treated as a countable resource once it becomes available to you. In many cases, the issue is not just whether you inherit, but how the inheritance is received (outright vs. in a trust) and whether any planning options exist before you accept it.

What Pennsylvania Law Says

When someone leaves you property, Pennsylvania law generally allows you to either accept it or refuse it (disclaim/renounce it). That matters because an outright inheritance can quickly create benefits problems, while a properly timed and properly drafted disclaimer may redirect the inheritance away from you under the governing document—potentially avoiding the inheritance ever becoming “yours” in the first place. However, disclaimers and trusts have strict legal requirements, and mistakes can create irreversible eligibility and creditor issues.

For additional background, you may find these related resources helpful: Can an inheritance affect my Medicaid or benefits eligibility in Pennsylvania? and When should I disclaim (renounce) an inheritance in Pennsylvania?.

The Statute

The primary law governing the ability to refuse (disclaim) an inherited interest is 20 Pa.C.S. § 6201.

This statute establishes that a person who would receive an interest in property (including under a will, intestacy, joint ownership, life insurance, annuities, or retirement/benefit plans) may disclaim that interest, in whole or in part, through a written disclaimer that meets statutory requirements.

In addition, Pennsylvania law addresses how a disclaimer is treated as a matter of state property law. See 20 Pa.C.S. § 6205, which generally provides that a disclaimer “relates back” to the decedent’s date of death for state-law purposes (and explains how the disclaimed property passes), while also noting that the statute does not decide creditor-rights issues.

Why You Should Speak with an Attorney

Even though Pennsylvania law allows disclaimers, using an inheritance-related strategy to protect SSI/Medicaid eligibility is highly fact-specific and time-sensitive. Legal outcomes often depend on:

• Strict Deadlines: A disclaimer must be handled promptly and correctly, and timing can be critical once you have access to (or control over) the inherited asset. If you accept benefits of the inheritance first, you may lose planning options.
• Burden of Proof: Benefits agencies may scrutinize whether you had the legal right to access the inheritance, whether it was “available” to you, and whether any transfer/renunciation should be treated as an improper transfer for benefits purposes.
• Exceptions and Traps: Not every inheritance can be “fixed” after the fact. The type of asset (cash vs. house vs. retirement account), how it is titled, whether there are co-beneficiaries, and whether a trust is involved can change the analysis. Disclaimers can also have creditor and tax consequences, and an incorrect approach can create a benefits interruption that is difficult to unwind.

Because SSI and Medicaid are governed by detailed federal and state rules, you should talk with a Pennsylvania attorney before you accept, spend, transfer, or sign anything related to an inheritance.

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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.