In preparation for a Medicaid application I would like to know what to do about two (existing) whole life insurance policies.
The cash values of the policies will be counted in the total of the assets the applicant has when he applies. My question is about the death benefit.
The Medicaid applicant is the owner of the policies. The insured is his wife. The beneficiaries are his sons.
If the wife dies and the payout goes to the sons, is Medicaid going to consider that death benefit a gift?