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My brother died last year and had a sizeable life insurance policy with my mother as sole beneficiary.


Her home needed major repairs - new septic system, new roof, new electrical wiring, and plumbing issues. After all of that, she still has about $25K left. I am her Power of Attorney.


Mom has some recent health issues and has practically stopped eating. She’s lost weight. Although we share responsibilities for my mother, my brother lives with her and it’s a struggle for him to make sure she takes her meds and eat well.


We are waiting now for surgery that is the last option we have to get her over her health issue after exhausting other options.


But during all of this I was thinking she’s not going to last much longer. What if my brother could not care for her any longer and she had to go to a nursing home or even hospice? I don’t want to be in a position of having to spend down the insurance money.


Is it possible to put this money in a trust that would protect it if mom needed Medicaid services?

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With my nephew, Medicaid knows about his Irrevocable Special Needs Trust but it is not counted as part of his income. The whole reason it was gotten was to protect his late Moms insurance money so he could get SSD. He has Cerebal Palsy and a neurological problem. SS suggested it. Upon his passing, the trust reverts back to Medicaid. I am payee and limited how I can spend it.
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Reply to JoAnn29
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An irrevocable trust does not necessarily protect assets from Medicaid. Income is still counted by Medicaid
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Reply to worriedinCali
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Irrevocable trust. She can't control the assets in an irrevocable trust, so Medicaid does not consider the assets as belonging to her. (Pay no attention to the comments from Opioid Valley.)

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Reply to Beekee
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Please fellow members remember that not everyone realizes how Medicaid works. I learned from this site. People ask questions because they don't know. I think we could all be kinder in our answers.
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Reply to JoAnn29
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At this point, I wouldn't consider it. Mom will probably be on Medicaid within 5 yrs and the trust will be revolked.

Prepaying for a funeral is wise. The remainder should be spent on her and her alone. No large gifts to anyone, Medicaid will notice.
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Reply to JoAnn29
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Her money is to be used for her care. You cannot protect her assets, if she needs Medicaid to pay for a nursing home, she will have to use her assets. The insurance money is for her so why wouldn’t you spend it ON her? You can use some of the money to prepay for a funeral. Trusts don’t protect funds from Medicaid. If you had to do, for example, a miller trust, the money goes to Medicaid not her heirs.
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Reply to worriedinCali
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Why do you not want to spend your mother's money on her care? Is it so you can inherit? Do you think it is the responsibility of tax payers to provide care for your mother so you and your brother can inherit money?
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Reply to Tothill
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