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

Jill’s Tennessee Estate Planning Solution: Estate Planning Solution — Death Readiness

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This podcast provides estate planning guidance for women and discusses real, practical issues, from caregiving, pre-planning a funeral, how to avoid probate using beneficiary designations, planning for individuals with special needs (and special needs trusts), whether you need a professional fiduciary (trustee or executor), how the estate tax works and how to preserve your legacy.

 

Tuesday Triage episodes answer questions from listeners like you, from powers of attorney, healthcare advance directives (and whether they work when you’re pregnant), what a Last Will and Testament really is, whether you need a trust, how Medicaid works and how to have senior and elder care conversations and how to care for aging parents.

 

Disclaimer: This podcast and all related content are for educational purposes only and do not constitute legal advice. No attorney-client relationship is established here. Use of this information without careful analysis and review by your attorney, CPA, and/or financial advisor may cause serious adverse consequences. For legal guidance tailored to your unique situation, consult with a licensed attorney in your state.