There are income allowances for the support of family members in certain situations, such as a low-income spouse. Pursuant to 42 USC § 1396r–5(d)(1)(C), these rules can be extended to certain “family members” who include “dependent” children. While this term is not defined in the statute, it sounds like your niece would qualify. This is may be an issue your local Medicaid office has not run across since few nursing home residents have such young children, but you should bring the federal statute to their attention and find the corresponding state regulation.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.
