If on Medicaid, all insurance policies with cash in value Medicaid requires them cashed in. These can be used for prepayment of a funeral. Any balance going towards your care. (there is a spend down period) Employer and policies with no cash in value don't count. Usually, beneficiaries don't have to use the money to pay the other persons debts. Its now their money. Not sure about if Medicaid is involved. If you are on Medicaid then you have no money. If you do have a house and it doesn't sell before your death, then a lean is put on it at time of passing, not before.
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