My mother, who has advanced dementia, has been in a long-term nursing home for about a year. My father has been spending down his money...and we were recently approved for Medicaid. This is obviously a positive development, however another issue just arose. My uncle recently passed away and his two siblings (my father and aunt) are the only beneficiaries to his life insurance policy and 401(k). I am worried that if my father takes his share of the inheritance, this will disqualify him from Medicaid. I would hate to see this because my dad has already given practically all of his savings to the nursing home. Can the 401(k) be rolled over into an IRA account that is exempt from Medicaid? And can the life insurance somehow be gifted to my aunt or my dad's children? I appreciate all responses.