Confused with ALF wanting to cash in Mom's whole life insurance policy. Any advice?

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Hello, my mother just moved in to an assisted living facility in Illinois. After a lot of documentation she was accepted. She has lived there for three month snow. Today all of a sudden I am asked about her life insurance policy. Which I thought was odd because I gave all documentation of her life insurance three months ago before her acceptance.
I was then told well she can't live here now unless she cashes her $10,000 whole life insurance policy. She will have to move otherwise.
This makes no sense to me why they would do this to my mother after accepting her in. She has made friends and is very well liked by everyone there. Why would they move her for three months and then tell her this. I don't even know if this is legally right. This is all knew to me with my parent. Could you please advise me. Thank you very much for your time.

Sincerely,


Sarah

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Yes, it's not the ALF demanding it, it is Medicaid demanding it, and they have rejected the application. So sign the policy over or take Mom home. And NO you can NOT donate it to anyone. It has to go to the ALF.
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That's correct, unfortunately. Anything with a "face value" is a countable asset. Check with an estate planner or eldercare attorney if you need to, but probably she does have to give that up. Went through the same things with my folks. Even their burial policy we had to document it was not a policy with cash value at all.
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Sounds like your mother is on Medicaid.If so,Medicaid goes by your Mother's income and total assets.That $10,000 whole life insurance policy must hold a value is why they want your Mother to cash it in as spend down .Your Mother can donate it as give it up.Sounds like Medicaid is going back in your Mother's spending history.Medicaid goes back 5 yrs.
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