Does Medicaid count life insurance death benefits if the person applying is not the beneficiary?

I am with Alva on this. Mom's insurance policy has nothing to do with Dad. You don't even have to mention it. You were beneficiary.

Now if Dad had been beneficiary, then that money would have been needed to be used for his care. Now if Dad has an insurance policy with cash value, that policy will need to be cashed in and the money used for his care.

I would also think about LTC for Dad instead of an AL depending on his physical and mental state. ALs are just that they assist. There comes a time when care is more than they can give. They basically only have aides. Maybe one RN who oversees and is on call. If skilled nursing is needed, then a LTC is where he should be.

In my state, in an AL you pay privately for at least 2 years and then can file for Medicaid to be able to stay there. AL has to except Medicaid and the other problem is if they have reached their quota for Medicaid residents.

Its easier to get someone in LTC if they private pay first. Then changing to Medicaid is easier. Mom paid 2 months privately in a NH. My state gives you 90 days from start of application to spend down, get them info needed and find a facillity. Mom was admitted to facility on May 1. She had enough money to pay May and June. This took all her money but $180 well under 2k. Once I got all the paperwork in and confirmed it with the caseworker, Medicaid started paying July 1st. You can have the facility help with the application, but I would not count on them to carry through making sure every criteria is met.

If you haven't, I would think about pre-paying Dad's funeral. Medicaid allows this. Helps with the spenddown I actually used Moms insurance cash value to do this. Check with the funeral director, but you are allowed enough for the service, the viewing and that service. Flowers and I think the luncheon. I went ahead and picked the casket and everything that goes along with that. When Mom passed, everything was in place. I just had to order flowers and call the minister.

You assumably have already collected as beneficiary, your Mother's insurance. No, this is not your father's money. It was left to you. It is YOUR money and how you spend or save it is entirely up to you. It never WAS his asset. It was your Mother's policy and it was left to you, just as she might have left you her pearls.
Try to find a LTC facility that will keep your father when his assets run out; some ALF will not. Then when he is close to that time the Social Worker assigned will help you apply for medicaid payments to go directly to them for his care.

I don't see how they could count it...the owner of the policy is not the person applying for Medicaid and the owner is also deceased. It should have no relation to the Medicaid applicant as they are not even the beneficiary.

Not in my experience. Medicaid did not ask us about term life insurance policies. Medicaid only counted a life insurance policy as an asset if it had a cash value and was owned by the applicant or his or her spouse.

If you are the only beneficiary of the policy, the money is yours- not your dad's- and will not affect his application.