Can Medicaid Applicant Transfer Life Insurance Policy to Spouse?
Can someone applying for Medicaid transfer a $50,000 fave value universal life policy with a cash value of $1,906 to a spouse under the spousal impoverishment rules?
Yes. There are no penalties for transfers between spouses. They’re all permitted. The cash value will just be part of the spouse’s asset limit, which is explained here. The death benefit is not counted. While nursing home residents are limited to $2,000 in countable assets, their spouses can keep up to $137,400 in 2022 (lower in some states). The policy value would just be part of the healthy spouse’s $137,400 asset limit.