My mother is on Medicaid and in a nursing home; my father was not (on Medicaid or in a nursing home) he died last month and has a 5,000 insurance policy. My mother is the beneficiary. Will we have to surrender that money to Medicaid since they are the ones paying her nursing home bill along with her monthly social security check? Also one last question. She now will begin drawing half of his pension. Will this have to go towards paying her nursing home bill? They have a dependent child living at home who does not draw a check each month and money is needed for her continued care of household expenses.