My 85 year old aunt is in a nursing home and has Alzheimer disease. She has lived there for 9+ years. At the time of her admission she had no real assets to disclose. She receives medicare and benefits from the state of Massachusetts. I recently discovered that she has a "whole life" insurance policy with a face value of $2,500 and a current death benefit of $4,800 as a result of dividend earnings. She may also own shares in an insurance company amounting to a value of approximately $1600. I located this account as an abandoned asset with the state. I am listed as the beneficiary of the life policy but have no knowledge of who is the beneficiary for the other asset. Out of love and respect for my aunt, I have been active for her care and decisions related to her health and serve in the role of her health care proxy. Her children have chosen to not participate with her care responsibilities.

I would like for the entire proceeds to be rolled over to a funeral home to cover some of her final funeral expenses. If I received the total distribution, all of the funds would be used for this purpose.
-If the nursing home is rightfully allowed to cash in her policy to offset her care expenses, will all of the policy proceeds (approximately $ 4,800) go directly to them?
-Is it possible to roll over the $2,500 face value directly to a funeral home for funeral arrangements.
Other details: She currently has a burial account at the nursing home for $1,400 and a personal needs spending account with a balance of $1,200.
-How is the other asset ($1,600) handled? I'm assuming that I may not be the beneficiary of this account.

Thank you for any help you can provide regarding all of my questions.

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Is she on Medicaid? Talk to her financial case worker. (Name is usually on the annual renewal forms.) Prepaid funeral is an allowable spend-down item. The question really is how to set it up.

If she is not on Medicaid, read the contract she has with the nursing home.
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johntrader, I am moving your question back to the first page. Hopefully someone familiar with this will be able to answer your questions.
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