Can a life insurance policy with a face value of 10,000 or a cash value $870 be sold to a relative for cash value?

certainly it can be sold for cash value, as long as the income from the sale is properly accounted for. Remember, the patient is allowed 2k in assets and this policy is nowhere near that.

Sorry your question didn't get answered in the past 6 days.... I will move it back to the top of the question to see if someone can answer it for you.