How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JD Your Own Question
JD
JD, Lawyer
Category: Legal
Satisfied Customers: 1335
Experience:  Over 11 years in practice as a litigator ... civil and criminal
1969057
Type Your Legal Question Here...
JD is online now
A new question is answered every 9 seconds

If a person is assigned to the state in a nursing home because

Customer Question

If a person is assigned to the state in a nursing home because of lack of money. What happens to the life insurance when they die. Does it go to the state of beneficary?
Submitted: 8 years ago.
Category: Legal
Expert:  JD replied 8 years ago.

It depends on who is the beneficiary of the life insurance. Life insurance only goes through the estate of the deceased when the estate is designated the beneficiary of the insurance policy. If that happens then the nursing home, along with any other creditors of the deceased could potentially file a claim against the estate and therefore the life insurance proceeds.

 

Normally a life insurance policy has a designated beneficiary. That beneficiary receives the policy amount upon the death of the insured. The money is not subject to the estate of the deceased, the will of the deceased, or inheritance taxes or other claims because it is not part of the estate. It passes directly to the beneficiary without passing through the estate.

 

Please reply if I can help further.

 

________________________

I am not your attorney. Therefore no attorney-client relationship exists and any communications on this website are not subject to the attorney-client privilege. For this reason, please do not divulge any personal information and use this site only for hypothetical questions. This forum is for general questions and answers and I cannot provide you with applicable law or legal opinions or advice in your jurisdiction. Please seek the advice of a competent attorney in your jurisdiction. While I can answer general questions and discuss general legal principles, I cannot give you legal advice in your state. The internet is a great place to get general information but should not be seen as a substitute for the attorney-client relationship or the services of a good lawyer in your state.

JD and 3 other Legal Specialists are ready to help you
Customer: replied 8 years ago.
The beneficary is a relative of the person in the nursing home. However, the state of Michigan is paying the nursing home fees. The home has been sold and all money is gone. Only thing left is a life insurance policy.
Expert:  JD replied 8 years ago.

The state shouldn't be able to take it. The life insurance proceeds will pass outside the estate (if worded correctly) and directly to the individual family member. Unless that family member has some obligation to pay the nursing home (cosigned... etc) then the nursing home and the state should not be able to touch the proceeds. I recommend having an estate attorney look over the insurance policy to make sure it complies.

 

Feel free to reply if I can help further.

________________________

I am not your attorney. Therefore no attorney-client relationship exists and any communications on this website are not subject to the attorney-client privilege. For this reason, please do not divulge any personal information and use this site only for hypothetical questions. This forum is for general questions and answers and I cannot provide you with applicable law or legal opinions or advice in your jurisdiction. Please seek the advice of a competent attorney in your jurisdiction. While I can answer general questions and discuss general legal principles, I cannot give you legal advice in your state. The internet is a great place to get general information but should not be seen as a substitute for the attorney-client relationship or the services of a good lawyer in your state.

JD and 3 other Legal Specialists are ready to help you
Customer: replied 8 years ago.
0
Expert:  JD replied 8 years ago.
Please let me know if I can assist further and thank you for coming to us with your question.