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My grandpa died and my gram is his life insurance beneficiary. She is on Medicare and they pay for her nursing home living (she has dementia). They currently take all of her SS etc except $50 a month. Can her POA (my sister) deposit the life insurance check into an account on Gram's behalf? All other bills are paid and Gram is not on the account so it won't impact Medicare eligibility. The money will be used to purchase a headstone as well as Gram's future funeral expenses.

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Has the life insurance money been reported to MEDICAID? Because it’s medicaid that is paying for your grandmothers nursing home, not Medicare. Medicaid is income based so that money must be reported to them. It doesn’t mater who’s name is on the account.
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Reply to worriedinCali
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I presume your sister is your Grandmother's POA. If she was your Grandfather's POA, that ended when he died & unless your sister was named Executor of his estate she has nothing more to do with his finances. However, if she was named POA for both your Grandfather & your Grandmother, that's a different kettle of fish.

Technically, you (actually your sister [she]) might want to consult a lawyer.

Whatever the case, the money is legally your Grandmother's, which means Medicaid can take it if they find out about it.

If your sister is your Grandmother's POA, then I supposed she can do what you are describing what the actual legal ramifications are if Medicaid were to find out about the money is an unknown that I personally would not want to have to deal with.

I do know that someone in your grandmother's situation is allowed to convert a life insurance policy into a prepaid funeral plan - whether that includes a headstone or not, I don't really know. And whether that is something that can be done after she has been on Medicaid, I can't say. It's a bit of a sticky situation.

I'd be tempted to tell your sister not to cash the check but go ahead & use it for what she's wanting to do & sign the check over as payment for the prepaid funeral & headstone.

Please tell your sister to make absolutely certain she thoroughly understands what the prepaid funeral she chooses will be providing & that it will be provided for the amount paid & will not charge any more. That means the headstone AND having it carved with whatever is to be put on it. If purchased & set up ahead of time MAKE CERTAIN THE COST OF ANY ADDITIONAL CARVING IS INCLUDED.
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Reply to martha908
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Are you referring to Medicaid?  And POA for an individual ends at that person's death.
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Reply to rovana
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