My Parents have several small life insurance policies. A few years ago we changed the beneficiaries from each other to my brother and I so we would get the proceeds in case the end up needing Medicaid. My understanding is the death benefits are not subject to Medicaid. My mother still has enough assets that she does not qualify for Medicaid. When my Dad passed away a few months ago one policy paid $2000, to my brother and I. I then discovered my Dad had a policy for $17,000 for who my Mother is the only beneficiary. I have not submitted a claim for this policy.
If my mother receives the benefit then it becomes her asset and subject to Medicaid for calculating her eligibility.
If I have my mother refuse the benefit I assume it will pass on to my brother and I as the next of kin, I have not confirmed this yet but if it did would this be a way to keep it out of the Medicaid eligibility?