The nursing home said Mom had too much money in her account and it was standard practice that they buy a burial policy to take care of the excess amount. Is this normal procedure in a nursing home?

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I just found a life insurance/burial policy that was taken out in my mother's name about a month before she passed away. The beneficiary was listed as one of the nursing home employees. I contacted the insurance company and they wouldn't dicuss the policy with me as I was not the beneficiary and referred me to the funeral home. I explained that my mother had dementia when the policy was taken out and no one had notified me about it and that she and my father both had pre-paid burial plans with another funeral home. The funeral home said she had too much money in her account and it was standard practice by the nursing home to buy a burial policy to take care of the excess amount in her account or DHS would take it. The policy was for an initial payment of $700 and 10 remaining payments of $700...and it doesn't appear that the signature is anywhere close to my mother's. Something just doesn't seem to be on the up and up to me. Is this a normal procedure in a nursing home?

Answers 1 to 5 of 5
N o no.
Top Answer
No, it’s not. It’s probably also against the law. You need to contact a lawyer immediately. Someone has stolen your mkther’s money.
Ignatz, while you're at it, place a fraud alert and security freeze on your mother's credit, then order the credit report immediately. Whoever forged her signature might have committed other frauds.

I wouldn't contact the nursing home just yet, until you have more documentation. But do get an attorney ASAP, and have him/her contact the life insurance company to stop them from paying out any further funds.
Absolutely contact an attorney. There may be some fine print in a contract you or your mother signed that gives them the ability to do this, but get good counsel.
Best
Margaret
I'm afraid it's a little late...my mother passed away in 2009 and I just found the policy in some of her things that I had never went through. I don't understand that if she had more money than she should have had, why not contact me instead of buying a policy she didn't need. I am the closest surviving kin.

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