Does a Life Insurance Policy Owned by Someone Else Have to be Spent Down for Medicaid?
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Question:
If a child is the owner of a life insurance policy, and the parent is the insured, is the policy excluded from a Medicaid spend down? There was no transfer of ownership; the child was the owner from the beginning.
Response:
Yes, the policy does not need to be reported to the state Medicaid agency. Only the Medicaid applicant’s assets and those of his spouse need to be reported on his application. Assets owned by others, even if the applicant is connected in some way other than ownership, do not need to be reported.
Related Articles:
Can You Buy & Transfer No-Cash-Value Life Insurance Policy without Medicaid Penalty?
Can You Transfer a Whole Life Insurance Policy and Still Get Medicaid?
Spending Down for Medicaid Eligibility
Handling a Whole Life Insurance Policy When Applying for Medicaid
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