Will Medicaid Count Payment on Life Insurance Policy as Gift By Mom?
Mom owned a life insurance policy on my father, who recently passed away. They named us kids as the beneficiaries. There was some cash value. When Mom eventually applies for Medicaid, will they look at that as gifting?
They shouldn’t. Your mother didn’t transfer anything to you at the time of your father’s death. Presumably, she named you and your siblings as beneficiaries long before he died. At most, the payments of insurance premiums or the small cash value of the policy at the time of your father’s death might be considered to be a transfer, but not the death benefit.
At least that’s my reasoning. You might want to consult with a local elder law attorney to see if she has had any experience with your state Medicaid program that either confirms or rebuts this conclusion in your state.