I am sure each state has its own rules. Thanks for asking. I send a query to my tax lawyer and my estate lawyer. I hope he has not already formally taken possession.
From: Steve Jones Sent: Saturday, November 18, 2017 5:48 PM To: [email protected] Subject: Re: [AFMUG] OT Quandry I just got off with my mother, she doesnt remember the specific name. This is in illinois so may be different. Its was a pretty big chunk. Mom stressed though to get to an artorney yesterday. The trust had to be established before formally taking possesion of the money. It had to go directly to the trust. Had she just cashed the check into an account while setting things up it would have made her ineligible for further aid. This was around 70k, but would have made it virtually impossible to get back on the aid. Id say get with an attorney before the shipping is arranged, that may constitute taking possession of the award and be too late. Hers was not a prize award, it was an aggregat of payments she was supposed to be recieving while her pos father was alive, when he died the government made retroactive payments. So it may not be the same scenario. I can give you offlist name of the law firm here in illinois if you want On Nov 18, 2017 6:28 PM, <[email protected]> wrote: If there is any chance you could come up with the type or name of the trust it could be helpful. From: Steve Jones Sent: Saturday, November 18, 2017 3:59 PM To: [email protected] Subject: Re: [AFMUG] OT Quandry My sister lives in a group home, same scenario, funding fully from programs. She had a substantial windfal when her pos dad died. Went through a lawyer and got the money into a specific type of trust, its usable as she sees fit, but upon her death the government gets any remaining funds. Its a fairly common setup, but you really need a lawyer to handle it, there are alot of Is and Ts any one of which not being correct can cause ineligibilty for aid If he has the option to take cash value on the prize it would probably be easier to swing. On Nov 18, 2017 3:28 PM, "Chuck McCown" <[email protected]> wrote: My nephew is mostly bed bound. Quad due to spinal fracture about 25 years ago (he is 54 I think). Has almost 100% hand functionality. I have no idea how many government programs support him. He can use a wheelchair and I bought him a wheelchair van years ago but he really is not healthy enough to use it. So, today he won Richard Petty’s Superbird. http://www.wintheking.com/rules/ His sister and her son went back for the drawing. One of those things where you pick and key and everyone gets in the car and tries to start it. No idea how much this thing is worth but plenty. I wonder if my nephew is going to lose his financial support from the government due to this win? I am sure he is going to have to pay taxes so I am also sure he will have to immediately sell it. Anyone know how welfare works for folks that are 100% disabled and then get a windfall? I really don’t want to ask him about this. Especially today as I am sure he is pretty excited. So not gonna be his debbie downer. But having significant IRS issues myself in years past, I immediately start worrying about this kind of thing.
