My mother suffered from a severe stroke a year ago which left her totally incapacitated. She doesn't have any POA, wills, etc.

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She also doesn't have any financial resources - we, the children are all pitching in to help her financially & all her other needs. She has a life insurance in the amount of $100,000 and we, the 5 children are the beneficiaries. But we all have decided that our mother needs that money more than any of us, and that she needs it NOW more than ever. We want to provide her a better care and living situation than she has right now. The question is, can we get a loan from her life insurance? And if so, how are we gonna go about it, being that she never appointed anyone to handle her affairs? Or is it even possible to do it? Please, please help. We love our mother dearly and we want her to enjoy her money while she still can. Thank you for your help.

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Depending on the type of life insurance policy your mother has and the provisions within the policy will be the determining factors about whether or not a loan can be taken out on the policy. Again, I will say what has been stated, you need an attorney versed in elder laws for the state your mother resides. Most generally, you can not convert or cash in property for someone who has become totally disabled. You will have to have someone appointed to act on your mother's behalf and only then will you be able to do these things. We went through this with my father in law in 2009 and I know personally that laws vary from state to state. Medicaid will only allow a person to have up to $2,000 in personal assets. Up until that point your mother will be on a "spend down". There are a lot of misconceptions out there - please get the legal advice first. Sit down with your siblings, write out all your questions / concerns. Then get the answers from the individuals who know best. DO NOT LISTEN TO INDIVIDUALS WHO WORK IN THE NURSING HOME FACILITIES - DO NOT TAKE ADVICE FROM ANYONE OTHER THAN ATTORNEYS WHO KNOW ELDER LAW. Take care of yourself, protect your mom! Good luck to you and God Bless!
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I want you to know I truely admire what you are doing! I know this is not easy. I would also encourage you to get some help from elder law attorney. I would think that you would not get the cash value of the policy if you surrendered it. Medicaid is to help folks without resources. If she has no other assets she would qualify I think. take care...
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Please, get yourself to an elder law attorney as soon as possible!
If your mother truly has no other financial resources, her care (including skilled nursing) can be covered by Medicaid.
An attorney will be able to tell you the best way to handle your mom's insurance policy. Maybe it's not considered an asset, maybe it can be converted to a long term care policy... Questions for an expert. Don't just decide to use it's cash value. The cash from the policy wouldn't last nearly as long as the benefits from other options.
How to get your mom's POA is another question for an attorney.
You don't say what her living situation is now, but if by "enjoy her money while she can" you are thinking that the facilities that accept Medicaid are always 'less enjoyable' than the facilities that don't, that is a big misconception.
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