My father is close to qualifying for Medicaid for his nursing home expenses. Dad has a $100,000 life insurance policy with my Mother as the beneficiary. I hear that Medicaid, after Father dies, can acquire certain assets that my Father owned. If the beneficiary is my Mother, his children or his estate can Medicaid take the death benefits to help offset the expenses thaat were incurred?
There will be NO whole life policy if dad is to go onto LTC NH Medicaid as that whole life policy with a cash value will need to be cashed in...
the life insurance $ becomes income to him the month received and then an asset afterwards.
if your mom is staying living at home & herself NOT going into a facility and onto Medicaid, then she is considered a “community spouse” (CS).
As a CS, she is not required to herself become impoverished for dad to be medicaid eligible. Only dad needs to be impoverished at whatever their state has for income max & assets. But just how to best position her $, her income and her share of joint assets to be financially secure as a CS for perhaps years is flat not simple. Most states have CS assets at abt $128k, but determination of what are assets imo has ability to be somewhat creative. But to me it’s not ever, ever a DIY.
I did my widowed for decades mom’s LTC Medicaid application, it was no picnic at about 130 pages submitted in the initial document drop, but mom had started spend down & consolidating stuff years before Medicaid was ever on the horizon & I had been her DPOA and signatory on all financials for years prior and pretty well knew what her finances were like her last decade. It was a pretty straightforward application even with her keeping her homestead. Even then it was under a narrow timeline for documents which just must be done. If there’s a question by the caseworker, you have like days to get whatever it is they need, there is no maybe manana for LTC Medicaid documents submission.
Realize lots of stuff couples routinely do.... like have 2 cars, have a single checking account where both SS$ goes into, has each other as beneficiary.... will be an issue for LTC Medicaid.
That life insurance policy has value; it is $ they can use to get an attorney to deal with mom as CS and shepherd your dads Medicaid application and the eventual annual renewals. Good luck.
The other thing is, Mom would be considered a Community Spouse. She would keep the house and a car. If there are any assets besides the insurance policy, they will be split between ur parents. Dads having to be spent down then Medicaid taking over. Mom will not be made impoverished.
Since each States criteria is different, you may want to talk to a caseworker at your County Medicaid office. Where I live its part of Social Services.