Temporary Assistance for Needy Families

• The Temporary Assistance for Needy Families (TANF) program provides money on a debit-type card for families to use to pay for basic necessities such as rent, utilities or gas to get to work. Qualified households must have countable assets less than $2,000 unless a household member is older than 65, in which case the asset limit increases to $3,000. The house you live in is usually considered an exempt asset, but if you inherit a second house that is worth more than $2,000, you will lose your benefits as the house is considered a lump-sum inheritance. If you sell the house, you may become eligible for benefits again after a certain length of time. Your state department of social services can help you calculate when benefits could be reinstated.
  
  

Food Stamps

• The program that used to be called food stamps is now known as the Supplemental Nutrition Assistance Program (SNAP). It has the same countable assets requirement as TANF, but it doesn't usually penalize recipients because they receive a lump-sum inheritance. If you inherit a house but your gross income remains below 130 percent of the federally determined poverty level, you can continue to receive SNAP benefits. If you are receiving SNAP benefits and your income level is higher than 130 of the poverty level, inheriting a house may make you ineligible for SNAP benefits.
  
  

Medicaid

• Medicaid benefit requirements vary by state and your household's circumstances. If you qualify for Medicaid and inherit a house, you will likely lose your Medicaid benefits as long as the asset exists. You have the option of using your new asset to repay the amount of Medicaid benefits you have received so far; if you do this, you may continue to qualify for Medicaid. If you opt not to repay, then you may lose your benefits. You can reapply when you have exhausted the asset -- for example, if you sell the house, you can reapply once the proceeds of the sale are gone. You cannot reapply if you choose to keep the house, unless you move into it.
  
  

House as a Resource

• When you inherit a house, the inheritance counts as income from the month you receive it even if you haven't taken possession of the house yet, which could cause you to lose benefits temporarily while your eligibility is examined. If you are renting and decide to move into the house you inherited, you must reapply for lost benefits. The house you live in is usually an exempt resource, so you could keep the house and reinstate your welfare benefits.