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 Dear
Dr. Don,
My 78-year-old mother inherited $200,000, but she does not want the money in her name because it will affect her Medicare and her Social Security. What do I invest the money in and if it is put in my name, can I put it in different CD accounts?
-- Marie Munificent
 Dear
Marie,
Your mom needs to talk to a tax professional and/or an attorney about her inheritance. Putting it in your name doesn't finesse the situation if she should need to go on Medicaid because of the new laws concerning gifting assets from three to five years prior to applying for Medicaid.
The effect on her Medicare coverage
and Social Security income should be nonissues,
but again she should talk to a tax professional
or attorney. An inheritance isn't considered taxable
income to the recipient for federal income tax
purposes.
How your mom should invest the money
depends on her total financial picture. She shouldn't
look at this money as separate from her other
assets. If CDs are the answer, then make sure
they're insured deposits either by only depositing
up to the FDIC limit at a single bank or by using
CDARS, a type of CD discussed in the Bankrate
feature, "CDARS:
An easy way to beat the $100,000 FDIC limit."
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