Why Giving Money Can Do More Harm Than Good
A viral GoFundMe campaign for a DooDash delivery driver reminds us that generosity, while beautiful, can have unintended consequences. In this episode, Jill walks through real-life examples from her law practice to explain how giving money, especially to someone receiving government benefits, can sometimes do more harm than good. Thoughtful generosity often requires slowing down and understanding the full picture.
What You’ll Learn in This Episode
Why good intentions aren’t always enough. Even well-meaning financial help can create serious legal and financial consequences when government benefits like Medicaid are involved.
What “means-tested benefits” actually means. Programs like Medicaid require recipients to stay below strict income and asset limits to qualify and remain eligible.
How a financial gift can backfire. A lump sum (like GoFundMe proceeds) count as income in the month received. If retained, the lump sum becomes a resource in the following month. Both an increase in income and an increase in resources can push someone over eligibility limits and cause a loss of government benefits
The real cost of “help.” A $10,000 gift could trigger loss of coverage and result in tens of thousands of dollars in out-of-pocket medical or nursing home costs.
Why Medicaid eligibility is not “set it and forget it.” Eligibility is reviewed regularly, and changes in income or assets can trigger reassessment or penalties.
How small details can cause big problems. Even something like a life insurance policy structured incorrectly can jeopardize benefits eligibility.
The hidden questions behind sudden wealth. When someone receives a large sum of money: (i) Can they manage it responsibly? (ii) Are they protected from scams or pressure to give or loan money? (iii) Do they have an estate plan in place?
The core principle: “First, do no harm.” Sometimes the most compassionate action is to pause, ask questions, and ensure your help actually helps.
Resources & Links
Brittany and Richard’s News Clip on YouTube: https://www.youtube.com/watch?v=wnYmQH4Ivv4
Brittany’s GoFundMe campaign for Richard’s benefit: https://www.gofundme.com/f/give-richard-a-chance-to-rest-again
Episode 20: What You Need to Know about Medicaid and Protecting Your Mom’s House: https://www.deathreadiness.com/podcast/episode-20-what-you-need-to-know-about-medicaid-and-protecting-your-moms-house
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