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The answer is no, in general your inheritance will not be subject to income taxes. However, if you inherited something that subsequently appreciated, the appreciation could be taxable. As the recipient of the inheritance, you donât have to pay income taxes. But, taxation can be a factor when you look at the big picture. There is an estate tax in place, but there is a $5.43 million exclusion in 2015.
Sarah Schwarcz. Feb 02, 2015 - 12:40 PM. Yes, it will definitely affect Medicaid. Receiving an inheritance while on Medicaid will cause the Medicaid recipient to be thrown off the Medicaid benefit, in the event that the inheritance is in excess of the allowable asset amount in their region.n addition, in some states/counties Medicaid may look to recover funds that have been used to care for the Medicaid recipient and will request that amount from the inheritance. Once Medicaidâs claim has been granted the remaining inheritance money may be used for the benefit of the beneficiary.