When my mother passes, will the insruance benefit be assigned to the nursing home?
My mother currently is in ICU in the hospital and a resident of a nursing home for the last 15 months. She is on medicaid. She has three small life insurance policies. The cash value of the life insurance is less than what NY allows a person ($13,800) to keep in assets. When she passes does the insurance benefit get assigned back to the nursing home or can it be given to her beneficiaries that she chose on the life insurance? We will not be probating her will because she has no property and nothing of value besides her life insurance policy. Thank you.
Expert Answer
Since NY let your mother keep the insurance policies, they are exempt resources. When your mother passes away, the proceeds will be paid directly to the beneficiaries. Medicad has no claim to them.