Elder Law Answers
Can State Take Life Insurance Proceeds for Estate Recovery?
My mom has an individual whole life insurance policy. Her current policy has a death benefit of $30,000 and no cash value....
Read moreDo Life Insurance Proceeds Affect Medicaid Approval?
- January 9th, 2024
Q
I cashed in my dad’s whole life insurance policy, which is valued at $10,877, to get him approved for Medicaid. The funds are in his savings account. Who would I speak with regarding the spend down stipulations?
A
Your state Medicaid agency or an elder law attorney near you will have all the answers regarding insurance policy proceeds and Medicaid spend down requirements. You can easily locate an elder law attorney in your area to explain your situation.
Medicaid Lookback Periods
Spending down assets and income without incurring lookback penalties can be a bit complicated. One of the strategies an elder law attorney may discuss with you is asset preservation using a trust. This may allow a Medicaid recipient to keep significant money and property for other family members while still maintaining eligibility for long-term health care services.
Medicaid Basics
Each state has different income and asset requirements, but you can learn more about the basics of Medicaid qualification in our article How to Plan Ahead Before Seeking Nursing Home Care. It covers asset and income limits and health care services at home or in a facility.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.