Spend down of cashed-in term life insurance.

Started by

My mother does not have a penny on her . Doesnt she have the right to keep two thousand. POCAHANTAS

5 Comments

I'm a bit confused here. I was expecting a life insurance question. Are the golden dollars a form of life insurance? What years were the dollars made? This very specific consideration would probably have to be asked to the social worker handling your application. I see 2-3 possible outcomes. If the dollars are recent, they would be considered as simple money. If the dollars are older, they may be considered as investments. Or the dollars may be considered as personal property, such as jewelry, if they are collectible. Were the dollars bought at one time or were the accumulated over time? I ask this because I was wondering if the purchase is traceable.

My feelings on this is that if the state is aware of the dollars, they will be considered as money or an investment to be sold at market value with the proceeds being applied to your mother's care. This could be totally wrong, though. So if the dollars are a known asset, I would ask the social worker about how they would be handled.
Oh, I misread your question. So sorry. I was thinking of Sacagawea dollars when I read Pocohantas. Doh me. I believe your mother will be able to have $1500 life insurance.
pocahantas, what is the situation here? Your mother is applying for Medicaid? Yes, she is allowed $2,000 in assets, plus she can also have pre-paid burial arrangements. Is that your question? Is someone telling her otherwise?
JessieBelle you too funny!!! Was that a Homer Simpson Doh!!!! You do need a break Girl Friend!!!!
I didn't want to admit that I misunderstood the question even the second time through. I see Pocohantas's mother already has the $2K, so it is just money now. Jeanne's answer took care of everything, so I just went over to the corner to hide. :)

Keep the conversation going (or start a new one)

Please enter your Comment

Ask a Question

Reach thousands of elder care experts and family caregivers
Get answers in 10 minutes or less
Receive personalized caregiving advice and support