In Ohio, can you inherit money and still keep your welfare?

Question

My boyfriend's mom just inherited $135,000 from her father's estate. She has been going out and buying new stuff left and right. That's all fine and well, but she is on Section 8, collects the maximum allotment for food stamps, has full Medicaid, and is on full SSI. She doesn't have to pay a dime for her health care (not even a co-pay) and her rent is get this...$15/month. She doesn't even have to pay for her electric bill anymore. My question is, is what she is doing illegal or not? She keeps insisting to my boyfriend and I that as long as it's a "supplemental needs bank account" she still can keep going to free stores and food banks and keep all of her government benefits because it doesn't "apply to her cost of living and her BASIC NEEDS". From what she keeps telling us, it's a having fun account and can only be used on frivolous stuff, like the $4,000 bedroom set she just bought. We weren't going to say anything until she started wanting to write us out $1,000 checks, have us cash them, and then return the money to her so she didn't have to claim it with the government. She said that way they couldn't keep track of it. This all just feels really wrong and sounds fishy to me. Is what she doing illegal? Thanks!

Ti · Accepted Answer

Her disability income is not going to be affected by her inheritance, but her welfare benefits will. If she is not reporting her windfall to Section 8, the food stamp office, and any other public assistance that she may be receiving, she is breaking the law.
There is a name for it. It is called "welfare fraud". She could go to prison.

Legend Lady* · Answer

Yes it is illegal. If she is getting disability  she may still be entitled to that if she earned it. But not section 8 housing , food stamps &  medicaid. I receive Disability & have to pay $98 a month for my medicare card. do not get Food stamps or section 8 because I have over $900 in assets  ( I get 1100 a month, but I worked for 36 years before becoming disabled. She is not only defrauding the Gov. she is defrauding tax payers who work for a living.  if she was doing nothing illegal she would cash the checks herself. You & your boyfriend should take no part at all in this or you could end up as accessories to perpetrate a fraud*

No More Abuse · Answer

She needed to report this inheritance monies..anyone can call the welfare fraud line and report a person when they receive monies while on welfare..they would investigate her and she would have to pay back the state because what she appears to be doing is illegal

Jan · Answer

She is committing fraud. Any income has to be reported,there is no such thing as a "having fun account". Her inheritance would make her ineligible for all of the benefits she is getting.
Do not cash any of the checks she is giving you. You could be held accountable is you know about the fraud.

Anonymous · Answer

When she got the $135,000 the IRS, and state tax agency were informed... so the Government already knows and it won't take very long before they start sending letter to her.

Also if she lies on her tax forms she could get criminal charges for tax fraud.

DON'T TAKE ANY OF THOSE CHECKS: IT'S TAX FRAUD. And also you'll be taxed for that money even if you gave it back to your mother (the banks keep copies of all those check transactions and your name will be on them).

Em · Answer

The party will be over when she's caught.  She'll have to pay back all the monies she's received from the state and quite likely do time behind bars.

happy2b_white · Answer

Get her to write you at least 5 checks for $1,000 each, then cash them and keep the money. It's obvious that she doesn't need it.

HAGAR!!! · Answer

Yes, what she is doing is illegal and I certainly hope that she gets caught.  If it sounds fishy, than it probably is fishy.

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In Ohio, can you inherit money and still keep your welfare?

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