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Medicaid Recovery - is life insurance an asset.

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LiteWait

Junior Member
My mom passed away last fall and I just received a letter from NJ
Medicaid office wanting me to document my mom's assets at the time she
died. She was in a nursing home on Medicaid with a portion being paid
by her VA pension and Social Security. She had no assets other that a
VA group life insurance for about $14,000. I and my siblings applied
for an got the life insurance distribution. My question is do I (or
should I) report the life insurance as an asset? Does medicaid have
the right to place a lien on that amount since we are the beneficiaries not her? We've used some it to pay for her funeral services. Any advice will be appreciated!
 


Kiawah

Senior Member
Not a lawyer, but I think you'll find the answer is yes.

For my MIL, before she would be accepted into nursing home in PA, we had to cash out one of her life insurance policies because it was over the allowable threshold, and then use those proceeds to spend down.
 

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