Is it true that an agency takes properties of the deceased and does not foward any properties to family members like children?

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This person has asked a second question concerning beneficiaries and insurance policies.
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It is true that any outstanding debts must be paid before the beneficiaries can receive anything from the estate, if the debts are large that often means there is nothing left for the heirs.
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What agency are you asking about? Is Medicaid involved? Is the person in a care center or in their home?
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