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Are you talking about Medicaid. If so, Medicaid expects all assets be spent down. The applicant is allowed to have a house and car. All insurance policies not owned by employer has to be cashed in if there is cash value. Money can be used to prepay for a funeral. In my state u are allowed 2k left. If there is a house at time of death, a lean will be put on it so when/If sold they can get the money back spent on the applicants. There is a lot more that goes with Medicaid but I gave you an overview.