If your parents have no assets except 2 small life insurance policies, can a nursing home take them if one needs long term care?

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Answers 1 to 10 of 13
Is your parent already in the NH?

Has Medicaid been applied for?
In our state you can use your money to prepay for funeral expenses but the NH does get the insurance policies as far as I know I mean use their money to prepay for a funeral-the nursing homes need the money to keep caring for people.
Yes, Medicaid spend down requires the spend down of life insurance except for a small amount -- $15,000 if I remember correctly.
After I wrote that, I wondered if Medicaid waits until a person dies, then takes the death benefit except $15,000. Or do they require the surrender of the larger policy and purchase of a smaller. This wouldn't be much money, since the surrender value of most policies is not much.
My parents are still home but dad has dementia. He is not yet at a NH. We will have to get him on medicaid when/if that happens. An elderlaw attorney told me to change the beneficiary from mom to myself. I was just curious to c if anyone else had the same situation going on. Thank u!
From what I understand the NH get the benefit as the family would receive if the person was not on medicare-the whole value of the policy but there is a clause that the surving spouse can use which is sposual refusal which has been kept secrate -in which a spouse can keep some of the person on medicaide's pension -medicaide tends to leave the surviving spouse very poor.
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I had a elder care attorney set up an irrevocable trust for my mother. We then gifted her house into the trust. I had the ownership & beneficiary of my mothers two small life insurance policies changed to the trust as well. This way if she ever does have to go on Medicaid the house & insurance policies can not be attached by Medicaid. Of course there is still the 5-year look back period. So if you are thinking about doing something like this it is better to do it asap.
You gave good information I did not know you could put insurance policies into the trust-it is amazing how much information was not told to me when planning to have my husband place -life insurances are big deals and would be helpful to a spouse who had to go on medicaide-I certainly will pass this along as I am about the spousal refusual which might be helpful to others.
The timing is important, since the lookback period can be long. I would double-check the part of life insurance, since the benefactor is the owner until he/she dies. I did not realize that change in beneficiary or adding it to a trust was a way to protect the asset. It certainly looks like something I need to investigate more. I've wondered how my mother would make it if my father had to go on Medicaid before he died. The life insurance money is important for her to live.
It was a shock for me while starting the medicaide paperwork-I had paid a lawyer a retainer but being dumb I tried to do it all myself except when I lost it in the social workes office when my husband was still in rehab and she did help me-it really was her job to begin with-he died before we got medicaide which was good because I do not know how I would have managed on it-the house was safe because it was in a trust longer than 5 years.

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