It is only for $1,000.00. How do I make this go away??
it was mailed to her old address i want to write on it "moved return to sender"
omg I am SO upset! Make it go away!!!!

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mica, no do not move it to your name, that would trigger a penalty. Just share it with DSS, I don't think it will be a problem.
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thank you for answering. I have to read this again to understand you, i am a bit slow... I panicked and wrote some dumb things up there that I couldnt delete. I got scared. It is a whole life and the dividend pays for it...
I dont think i have ever gotten anything about taxes about it in the mail.
I dont have a case worker unless you mean the DSS and she has been zero help to me.
So , i think I dont have to worry about it being counted as an asset with title 19.
I was thinking maybe i should ask for a form to become the owner though?
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So what you found is a life insurance policy with a face value of $ 1,000?
Or a check from an insurance company to your mom for $ 1,000?

If its a policy & still in force, then whomever is the beneficiary of the policy after mom dies gets the $ 1K or whatever the value has become. A 1k policy is pretty low, if it's an old old policy it could well be paid up & produces a dividend. If so, there are 2 things that may happen: mom will get a check for the divided $ paid or the dividend $ will plow back into the insurance policy. Either way the dividend amount of $ will produce a tax form from the insurance co. My mom had an old old paid up term policy and the dividend $ was reported as income on her annual medicaid renewal /recertification but the amount was amortized for the year so that the check would not take my mom over the monthly income limit allowed by Medicaid. It's pretty common as the caseworker knew exactly how to deal with it.

You probably don't want to cash in the policy because that will be $ that will make her ineligible as it will likely be the face value plus dividend or interest & I'd bet once added into whatever mom has as monthly income will take her over the limit for income & assets allow by Medicaid.

If its a check, it's income paid to mom and has to be reported in the month received or cashed. The insurance co will mail a tax form on it with moms SS# to the IRS. It will show up as income. Again as above, it could make mom negligible for medicaid as it could take mom over the maximum income & assets allowed by medicaid. If this is the case, soak with your moms caseworker about how to deal with.....usually if they start the month poor & eligible and then do a quick spend down on something they need (like new eyeglasses & hearing aids or a prepaid funeral policy) so that they end the month poor & eligible it's fine. You have to get the timing right as the eligibility rules are pretty inflexible and set. Ask the caseworker as this stuff happens all the time.

The policy just doesn't go away because you marked it return to sender. Really having a paid up policy is a good thing to be able to pay for funeral & burial or probate costs.
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maybe this applies=
"An applicant for Title XIX is allowed to keep a whole life insurance policy with a face value of up to $1,500, or a term policy of any face value (because a term policy has no cash value during the applicant's life)."
I am asking lawyer today
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if I am her DPOA can i have the check written to me and cash it?
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