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Life Insurance Beneficiary asks, does the county have rights to insurance proceeds?

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Lass1

Junior Member
What is the name of your state (only U.S. law)? Policy of a New York State resident.

I loaned mother 20k+ to pay off credit cards around 8 years ago. She made installments but it was not paid off when she moved to a nursing home in NY State (Monroe County), covered by Medicaid. Because so much remained, we arranged that I should be beneficiary of her life insurance (administered by her former employer), use it to pay off burial expenses and then what remained would be put toward the debt.

She passed away in August. We committed thousands to her cremation and to the wake she wanted for family in Maryland where ashes were scattered. A small amount remains (less than half of what was still owed) but family has received a notice from the county in which her nrsing home was located, saying that they have first entitlement to estate funds, including a life insurance policy. (For whatever reason, perhaps info she gave to her nursing home, the county believes that the life insurance policy is part of her estate.)

My understanding is that since I, not the Estate, am the beneficiary, these funds cannot be reached by the county. Am I correct?
 


Dandy Don

Senior Member
Yes, you are correct.

Does she have a will that is being probated and are there other assets in the estate that could be used to pay off the county?
 

Lass1

Junior Member
Thank you for your reply as it reinforced me considerably.

On the question...She had a will. Her other asset was a checking account with under $100 in it (her pension was automatically absorbed by medicaid on its deposit each month.) Personal possessions were small & no monetary value or another $100 at most combined. It is possible that the will is being probated but we have not attended to it, since it is a matter of words and there is not valuable property at stake.
 

seniorjudge

Senior Member
Thank you for your reply as it reinforced me considerably.

On the question...She had a will. Her other asset was a checking account with under $100 in it (her pension was automatically absorbed by medicaid on its deposit each month.) Personal possessions were small & no monetary value or another $100 at most combined. It is possible that the will is being probated but we have not attended to it, since it is a matter of words and there is not valuable property at stake.
I don't understand your answer.

Is the will being probated or not?

Do you have the will?

What EXACTLY (leaving out personal info) did the notice from whoever say about the life insurance proceeds?
 

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