Estate Law

Estate law questions? Ask an estate lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Someone told my mom if she goes into a nursing home that…

Customer Question
Someone told my mom...

Someone told my mom if she goes into a nursing home that they will take her whole life insurance policy and cash it in for payment, is that true? she just has medicare and the policy would be used for final expenses

Lawyer's Assistant: Estate laws vary by state. What state are you in?

Ohio

Lawyer's Assistant: What documents or supporting evidence do you have?

Settlers life wants her to convert her prudential policy to them so it will be secure and a nursing home cant take her life insurance.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

No thank you

Submitted: 7 months ago.Category: Estate Law
Show More
Show Less
Ask Your Own Estate Law Question
Answered in 1 minute by:
9/29/2017
Estate Lawyer: Attorney2, Attorney replied 7 months ago
Attorney2
Attorney2, Attorney
Category: Estate Law
Satisfied Customers: 8,489
Experience: 30 Years in General Practice and Estate Planning
Verified

Welcome and thank you for your question.

Ask Your Own Estate Law Question
Estate Lawyer: Attorney2, Attorney replied 7 months ago

"Medicaid is a federal and state government program that provides, among many benefits, payment for skilled nursing, rehabilitation and long-term nursing home care. Medicaid eligibility is limited by a term known as countable assets. Life insurance might not count toward the limit. Whether Medicaid takes your life insurance depends upon the type of policy, its cash value, if any, and how you plan prior to applying.

Whole life insurance policies accrue cash value and thus count toward the limit. The only exception is a policy or policies whose total face value does not exceed $1,500. Any other whole life policy whose face and cash value exceeds $1,500 counts and disqualifies an individual. The individual must therefore divest himself of the policy." https://pocketsense.com/medicaid-life-insurance-8395.html

Ask Your Own Estate Law Question
Estate Lawyer: Attorney2, Attorney replied 7 months ago

Whole life is considered an asset. These are guidelines for when a forced cash out can occur in a medicaid situation:

"Can Life Insurance Affect Your Medicaid Eligibility?

In order to qualify for Medicaid, you can't have more than $2,000 in assets (in most states). Many people forget about life insurance when calculating their assets, but depending on the type of life insurance and the value of the policy, it can count as an asset.

Life insurance policies are usually either "term" life insurance or "whole" life insurance. If a Medicaid applicant has term life insurance, it doesn’t count as an asset and won't affect Medicaid eligibility because this form of life insurance does not have an accumulated cash value. On the other hand, whole life insurance accumulates a cash value that the owner can access, so it can be counted as an asset.

That said, Medicaid law exempts small whole life insurance policies from the calculation of assets. If the policy's face value is less than $1,500, then it won't count as an asset for Medicaid eligibility purposes. However, if the policy’s face value is more than $1,500, the cash surrender value becomes an available asset.

For example, suppose a Medicaid applicant has a whole life insurance policy with a $1,500 death benefit and a $700 cash surrender value (the amount you would get if you cash in the policy before death). The policy is exempt and won't be used to determine the applicant's eligibility for Medicaid. However, if the death benefit is $1,750 and the cash value is $700, the cash surrender value will be counted toward the $2,000 asset limit.

If you have a life insurance policy that may disqualify you from Medicaid, you have a few options:

  • Surrender the policy and spend down the cash value.
  • Transfer ownership of the policy to your spouse or to a special needs trust. If you transfer the policy to your spouse, the cash value would then be part of the spouse's community resource allowance.
  • Transfer ownership of the policy to a funeral home. The policy can be used to pay for your funeral expenses, which is an exempt asset.
  • Take out a loan on the cash value. This reduces the cash value and the death benefit, but keeps the policy in place

https://www.elderlawanswers.com/can-life-insurance-affect-your-medicaid-eligibility-12421

So they could not touch term life insurance, they can an do consider whole life an asset that, unfornatunately, is not exempt.

Ask Your Own Estate Law Question
Estate Lawyer: Attorney2, Attorney replied 7 months ago

Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you.

If you would be kind enough to rate my service positively so I will receive credit for my work from the site I would appreciate it. A positive rating will not impact your ability to obtain a refund.

You may not be familiar with how the site works. The Attorneys to not receive credit from the site for their time or with customers unless the customer provides a positive rating. We answer your questions in good faith, hoping for a good faith response regardless of whether the law is in your favor or not. If you were unhappy with my service please let me know that you would prefer to work with another Attorney and I will opt out.

Thank you for your consideration.

Ask Your Own Estate Law Question
Estate Lawyer: Attorney2, Attorney replied 7 months ago

Thank you for using JA! Are you still online with me?

Ask Your Own Estate Law Question
Estate Lawyer: Attorney2, Attorney replied 7 months ago

Yes a whole life insurance policy is considered an asset that the nursing home could attach.

"settlers life wants her to convert her prudential policy to them so it will be secure and a nursing home cant take her life insurance." I would not agree.

If she is not already in a nursing home there are other actions she can take to protect her assets.

Are you still online with me?

Ask Your Own Estate Law Question
Was this answer helpful?
Ask Attorney2 Your Own Question
Attorney2
Attorney2
Attorney2, Attorney
Category: Estate Law
Satisfied Customers: 8,489
8,489 Satisfied Customers
Experience: 30 Years in General Practice and Estate Planning

Attorney2 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

My husband has been driving me insane with questions regarding estate issues since his mother died. I'm not a lawyer! Thanks to JustAnswer, I was able to calm his concerns.

Loretta TIllinois

Thanks Adam!! - A very direct and understandable response - you have been a great help!

Happy CustomerEllicott City, MD

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

< Previous | Next >

Meet the Experts:

Thomas McJD

Thomas McJD

Attorney

3,170 satisfied customers

Wills, Trusts, Probate & other Estate Matters

Barrister

Barrister

Attorney

5,488 satisfied customers

17 yrs estate law, real estate. Wills/Trusts/Probate

RayAnswers

RayAnswers

Attorney

5,126 satisfied customers

Texas lawyer for 30 years in Estate law

Infolawyer

Infolawyer

Attorney

5,032 satisfied customers

Licensed attorney helping individuals and businesses.

Ely

Ely

Counselor at Law

1,841 satisfied customers

Fully licensed attorney in Texas in private practice.

RobertJDFL

RobertJDFL

Attorney

1,454 satisfied customers

Experienced in multiple areas of the law.

ScottyMacEsq

ScottyMacEsq

Attorney

1,167 satisfied customers

Licensed Texas General Practice Attorney

< Previous | Next >

Related Estate Law Questions
We gave a Life Estate to our dad. We purchased the estate
We gave a Life Estate to our dad. We purchased the estate and care for him for an additional $1500. We have beliefs that do not include pork or shellfish and as such we do not have it in the house. Da… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
Have a big estate problem. Dads estate is worth millions of
Have a big estate problem. Dads estate is worth millions of dollars and the real estate is being liquidated to fund the trust and we are not getting disbursements. This is in Texas. The lawyer and co … read more
Jessica B
Jessica B
Juris Doctor
1,076 satisfied customers
According to the will, estate beneficiaries are entitled to
According to the will, estate beneficiaries are entitled to inherit furniture in defendant's residence. For various reasons, distribution to them cannot yet be made. However, the residence, which is n… read more
LegalGems
LegalGems
Juris Doctorate
11,968 satisfied customers
Can I buy a camera with a special needs trust fund. Texas. I
Second opinion] can I buy a camera with a special needs trust fund … read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
5,032 satisfied customers
My brother is executor of my dads estate - in the estate is
My brother is executor of my dads estate - in the estate is a manufactured home that I lived in with my father for over 6 years. My brother gave me a 60 day notice to vacate. Can he do that? The home … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
If the grantor of an estate in Illinois died in 2004 with an
If the grantor of an estate in Illinois died in 2004 with an Irrevocable Trust does a deceased beneficiarychdern have any claim Ccoroto the two year Statute of limitations … read more
Damien Bosco
Damien Bosco
Attorney
Doctoral Degree
4,519 satisfied customers
If a person is the beneficiary of an estate and receives an
If a person is the beneficiary of an estate and receives an inheritance from the estate is the distribution taxable… read more
Expert James
Expert James
Doctoral Degree
12,126 satisfied customers
This is a matter of a life estate. There are disagreements
This is a matter of a life estate. There are disagreements over the following: Beneficiaries listed above (in attachment) think they are entitled to a portion of the property My understanding is that … read more
Attorney2
Attorney2
Attorney
8,489 satisfied customers
My mom made a Special Needs Trust for me on my request after
My mom made a Special Needs Trust for me on my request after I was told that I will never be repaired from botched hip replacement. I found out 3 months ago I can be fixed and I won't need the SNT … read more
Barrister
Barrister
Attorney
Doctoral Degree
5,488 satisfied customers
My grandmother named me as executor of her estate but all of
my grandmother named me as executor of her estate but all of her financial assets have PODs or beneficiaries leaving no funds to the estate to pay funeral expenses & other estate expenses … read more
Jessica B
Jessica B
Juris Doctor
1,076 satisfied customers
California Estate Taxes - how soon is the estate responsible
California Estate Taxes - how soon is the estate responsible for filing an estate as of death taxes?… read more
LegalGems
LegalGems
Juris Doctorate
11,968 satisfied customers
Estate Cases. Need a Lawyer who is current on. +Estate in
The deadline is near ,need help.It's about our Mother and her death ,propertys… read more
Attorney2
Attorney2
Attorney
8,489 satisfied customers
Estate is in probate in california. the estate has out of
estate is in probate in california. the estate has out of state assets.1.) colorado home - just sold without going through referee valuation Sold for $260,000 on 1/24/2018 2.) nevada corp operating in… read more
socrateaser
socrateaser
1,031 satisfied customers
I am taking over a ist party special needs trust and need
I am taking over a ist party special needs trust and need help wth the paperwork … read more
Attorney2
Attorney2
Attorney
8,489 satisfied customers
I am the beneficiary of a special needs trust and my brother
I am the beneficiary of a special needs trust and my brother and sister are the trustees. They have never reported the trust activities to me, though I have asked repeatedly and they are mandated to d… read more
Attorney2
Attorney2
Attorney
8,489 satisfied customers
What papers do i need to apply for death benefits. Wv. By
what papers do i need to apply for death benefits JA: What state are you in? It matters because laws vary by location. Customer: wv JA: Has anything been filed or reported? Customer: yes by funeral ho… read more
RobertJDFL
RobertJDFL
Attorney
Juris Doctorate
1,454 satisfied customers
My wife's sister,, has a special needs trust. She has become
My wife's sister, Kathy, has a special needs trust. She has become increasingly psychologically and physically disabled. She inherited her aunt Gen's mobile home (worth about $300k) and my wife, Carri… read more
N Cal Atty
N Cal Atty
Doctoral Degree
59 satisfied customers
This is regarding special needs trust: my mother passed away
This is regarding special needs trust: my mother passed away in february. There are 6 children. My oldest brother and i are co trustees and co executors. My mother left one third of the estate to me w… read more
RayAnswers
RayAnswers
Attorney
Doctoral Degree
5,126 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x