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REPARATION PAYMENTS
Exempt for Medicaid Eligibility |
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Reparation funds are exempt resources that are not counted by the local Medicaid agency in connection with Medicaid eligibility.
There are four protected reparation payments:
1. German reparation payments
2. Austrian reparation payments
3. Nazi persecution accounts
4. Relocation restitution to Japanese
Americans |
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REPARATION PAYMENTS
Protecting Reparation Payments Without a Trust |
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Reparation payments must not be commingled with other funds in order to maintain its exempt status. A separate bank account containing only reparation funds will protect those funds from being counted by Medicaid. Some attorneys recommend a Trust to hold the reparation payments in order to evidence that the payments are exempt. This is one approach but not a requirement and obviously it is less expensive for the recipient to simply maintain a segregated bank account.
The payments received from any of these sources are exempt, BUT the interest earned on the payments is not exempt.
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