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: 10 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 10 months ago
Attorney2
Attorney2, Attorney
Category: Estate Law
Satisfied Customers: 9,021
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 10 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 10 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 10 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 10 months ago

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

Ask Your Own Estate Law Question
Estate Lawyer: Attorney2, Attorney replied 10 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?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with an estate lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Attorney2 Your Own Question
Attorney2
Attorney2
Attorney2, Attorney
Category: Estate Law
Satisfied Customers: 9,021
9,021 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

5,908 satisfied customers

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

RayAnswers

RayAnswers

Attorney

5,629 satisfied customers

Texas lawyer for 30 years in Estate law

Infolawyer

Infolawyer

Attorney

5,145 satisfied customers

Licensed attorney helping individuals and businesses.

Ely

Ely

Counselor at Law

1,867 satisfied customers

Fully licensed attorney in Texas in private practice.

RobertJDFL

RobertJDFL

Attorney

1,522 satisfied customers

Experienced in multiple areas of the law.

P. Simmons

P. Simmons

Attorney

1,215 satisfied customers

12+ yrs. of experience including estate law.

< Previous | Next >

Related Estate Law Questions
Mom is in the nursing home. We just sold her house. Should
Mom is in the nursing home. We just sold her house. Should she give us our share of the house $ or will Medicaid have a cow. … read more
RayAnswers
RayAnswers
Attorney
Doctoral Degree
5,629 satisfied customers
Life Insurance Question I just had to move my mom into an
Life Insurance Question I just had to move my mom into an assisted living for memory care. I found in her home an old Prudential WL policy ..face 10K....issued 1988 Has DBen now of 14K Has CValue of 1… read more
Gerald, Esq
Gerald, Esq
Juris Doctor
4,032 satisfied customers
My mother is in a nursing home with ALZHEIMERS. I have power
my mother is in a nursing home with ALZHEIMERS. I have power of attorney and I am her beneficiary on her life insurance policys which are enough to bury her. all her possesions were left to me as well… read more
Dimitry Esquire
Dimitry Esquire
Attorney at Law
Doctoral Degree
113 satisfied customers
My husband's mother passed away in a nursing home nov 2014.
My husband's mother passed away in a nursing home nov 2014. She had retirement benefits from her deceased husband, which we turned over to the nursing home every month. She also was on Medicare and Oh… read more
Dwayne B.
Dwayne B.
Juris Doctor
28,766 satisfied customers
This is an Elder law question Two weeks ago my 85 year old
This is an Elder law question Two weeks ago my 85 year old mom received a call stating that her Medicare premiums had been coming out of someone elses account since 2003 to the tune of $11,000 and the… read more
RayAnswers
RayAnswers
Attorney
Doctoral Degree
5,629 satisfied customers
Prudential Insurance Company attempting to find the relative/heirs
Prudential Insurance Company attempting to find the relative/heirs of my Father-In-Law, who passed away in 2008 in Dayton, Ohio with no will and his estate went through probate) contacted a Brother-In… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
my mother had an insurance policy on me which named her the
my mother had an insurance policy on me which named her the beneficiary if anything happened to me. She passed away, may I collect the insurance now myself?… read more
Barrister
Barrister
Attorney
Doctoral Degree
5,908 satisfied customers
My married parents were admitted into a Georgia Nursing Home
My married parents were admitted into a Georgia Nursing Home facility on February 22, 2013. The NH is applying for Medicaid for both of them. My mother has a $25,000 whole life insurance policy with a… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
Hello. I live in Ohio. My Mom passed away a few mos. ago and
Hello. I live in Ohio. My Mom passed away a few mos. ago and i am the designated benifiary on a life insurance policy. They mailed me a check. My Moms will talks about her estate and a trust she and m… read more
Dave Kennett
Dave Kennett
Doctoral Degree
25,741 satisfied customers
We have an irrevocable trust (set up in 2001) for my mother
We have an irrevocable trust (set up in 2001) for my mother in law who is now 93 and says she needs more care than we can give her at home. She has about $8,000.00 in savings, IRA etc. She has not had… read more
lwpat
lwpat
Doctoral Degree
256 satisfied customers
My Mother recently died and she had an life insurance policy
My Mother recently died and she had an life insurance policy with Prudential Insurance Co. which they acknowledged. How does one get a copy of the policy.… read more
Dave Kennett
Dave Kennett
Doctoral Degree
25,741 satisfied customers
When trying to assess your spenddown assets, do retirement
When trying to assess your spenddown assets, do retirement savings, i.e. IRAs for the spouse taken into consideration? Also to bring down the spenddown can you use those assets to payoff a car loan, p… read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers
EX-WIFE (1995) has Alzheimers and has been in a Geneva, IL
EX-WIFE (1995) has Alzheimers and has been in a Geneva, IL nursing home since late 2008 on MEDICAID. Ex-wife is barely coherent. My daughter use to take care of her and have power of attorney. Ex-wife… read more
lwpat
lwpat
Doctoral Degree
256 satisfied customers
My mother went to the nursing home. I have 2 propertys in life
My mother went to the nursing home. I have 2 propertys in life estate. It has been 10 years since this was done. She gets farm rent off of one and she gets soc. security. She has money in the bank and… read more
John Legal
John Legal
Doctoral Degree
3,418 satisfied customers
My 75 year old mother has been in a nursing home for 9 years.
My 75 year old mother has been in a nursing home for 9 years. She spent her life savings of $235.000.00 for care at the nursing home in Iowa. The last 4 years medicare has helped pay for her care. My … read more
Irwin Law
Irwin Law
Juris Doctor JD
7,187 satisfied customers
My aunt, who lived in Delaware, is now in a nursing home in
My aunt, who lived in Delaware, is now in a nursing home in Maryland since December 10, 2010. Due to strokes and other medical issues, she is not expected to recover and is unable to make decisions fo… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
5,145 satisfied customers
My mother is going into long term nursing care. She already
My mother is going into long term nursing care. She already has Medicare/Medicaid coverage. A few years ago, she purchased a $10,000 life insurance policy to provide for burial expenses. The type of i… read more
Dave Kennett
Dave Kennett
Doctoral Degree
25,741 satisfied customers
My mom is already in a nursing home, but she has a small life
My mom is already in a nursing home, but she has a small life insurance policy - if I transfer ownership will this make her ineligible for medicaid to pay for her stay there?… read more
dkennedy
dkennedy
Attorney
Juris Doctorate
27 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