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PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4099
Experience:  Tax professional and business consultant for 35 years.
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My mother in law is in a Care Home in Hawaii and receives assistance

Customer Question

My mother in law is in a Care Home in Hawaii and receives assistance from Medicaid . She and my father in law divorced many years ago. However, my father in law recently passed away and named her as his beneficiary. The amount of the insurance she received was $4,200. We wanted to keep that money in a separate account so that we can use it to pay for some of her funeral expenses when she passes away. She has a very basic funeral plan but it doesn't include all the expenses of a funeral service.
Can we do this or does the life insurance have to be turned over to Medicaid?
Submitted: 1 year ago.
Category: Finance
Expert:  PDtax replied 1 year ago.
Welcome to the site. I'mCustomer and will be helping you today.
As you know, medicaid recipients have an asset limitation. They can have done provision for final expenses.
In Hawaii, you are allowed to have a prepaid funeral as an asset. While you will have to use the funds and pay in advance, you can use the funds with the state's blessing.
Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer