My year 91year old mother who is legally blind is in the nursing home. Her money is about to run out.?

[Chris]

I have liquidated all of her assets except a life insurance policy. It has a 50k cash value or a 100k death benefit. I have spoke with the insurance company and can buy it out for the 50k, which is fair market value. I would put the 50k in mothers account to pay for the nursing home expense. The policy would be would still be in effect and at her death I would receive 100k. After the 50k is gone the only other money she would have is her social security. At this time we would need to apply for Medicaid. My question is would Medicaid want the last 50k back.

[george]

Why not just keep the policy intact at 100K upon her death instead of cashing it out for 50K to give the nursing home....
Just Apply for medicare which she should already get since she is getting Social Secirity and the nursing home will take her Social Security and whatever Medicare pays for and the insurance policy remains in place for her family.

[Ranger4402]

Apply for Medicaid. Apply now. You'll learn about the rules regarding assets and such. Someone may be depending on the life insurance policy for their own well being. Also, your mom one day will have a funeral and that will cost money. The life insurance can help pay for that.

[Adam]

Medicare is health insurance, it does not cover living expenses.

Medicaid does cover living/nursing home expenses. However, to qualify for Medicaid your mothers Social Security Income must be under a certain amount, and she must have assets under a specific amount. The life insurance policy will qualify as assets, and will prevent her from qualifying.

Last years average Medicaid cut offs were under $2,100 in monthly gross income, and under $2,000 in assets. This varies by state as it is a state administered program. I do not know what this years are as I have changed my line of work. I believe her total assets also have to be under the cut-off for 6 months prior to her begin able to get approved, and they typically need 2 years of financial records to prove she didn't transfer her assets to someone else.

You should get an application from your mothers local SSA office, and verify the current requirements.

[flower]

You cannot be eligible for Medicaid if you have life insurance worth $50,000. There is a limit to every asset that is allowed. Check your county Medicaid office. You can cancel the life insurance. Her social security would go to pay nursing home care and Medicaid pays the rest.

[Monique]

At this point, since you are talking about life insurance policies and what do to, I would recommend you consult with an Elderlaw attorney who is versed in the financial issues in looking at long-term care, to include Medicaid laws. You don't want to end up making the wrong decision in this situation at this point.