A family member recently found a policy, its small. Must I hand this over to the VA?

Mom lived and passed away in Veteran nursing home in PA. When I placed her there, I was asked if she had a life insurance policy. I said no. I knew of a policy that was dropped by her former employer when the company she worked for was sold. Medicaid insisted that she had a policy. I could not prove that the policy was no longer current. For this reason, she did not qualify for Medicaid. 

Thank you.