Life insurance can be assigned towards funeral costs for Medicaid spend down
Can the ownership of a whole life insurance policy be changed to a funeral home to make someone Medicaid eligible prior to the application being submitted without penalty?
Yes, prepaying for a funeral, whether with cash or with a life insurance policy with a cash value, is a legitimate Medicaid spend down. In fact, in my state of Massachusetts, timing is not an issue. It’s possible to “spend down” in this fashion both after the application has been submitted and after the date for which eligibility is sought. I’m not sure if that’s true in all states, so it makes sense to move as quickly as possible.