by Callahan » Tue Oct 20, 2009 06:58 pm
My mother's brother (my uncle) has passed away and left her in his will. She is residing in a nursing home in WI. Who will get her share of the benefits? The State? The nursing home? can the POA reverse anything? Please help, I hate for Uncle Sam to get it.
Posted: Tue Oct 20, 2009 10:04 pm Post Subject:
Your mother will get her share of the benefits. Is Uncle Sam currently paying for the nursing home? If so, he won't continue to pay for it once she has the money. She also won't be able disclaim the inheritance. Well, she may be able to, but disclaim the inheritance will stop her from qualifying for Medicaid.
Posted: Wed Oct 21, 2009 02:07 am Post Subject:
It would be great if you could clarify something. You mentioned the word "beneficiary" in your post subject, but use the word "will" in your post. Are you referring to the death benefits paid out of a life insurance policy or are you thinking of assets transferred at death via a person's will?
There's a HUGE difference there. As well, could you tell me if Medicaid is paying for the nursing home or is this being paid for by a Long-term care insurance policy or simply out-of-pocket from her and others?
This will help us clarify for you- we can't truly give you correct info based on your initial post...it just wasn't enough information. Thanks muchly!
InsTeacher 8)
Posted: Wed Oct 21, 2009 05:55 am Post Subject:
I was going through a site the other day wherein it was clearly mentioned that the proceeds may go to the policyholder's estate and may follow his will.
The policy holder might specify the beneficiaries in his will. If there's no mention of such beneficiaries in the will, the proceeds may form a part of his 'residual estate'. It would then be dispatched to his residual beneficiaries.
Posted: Wed Oct 21, 2009 07:43 pm Post Subject:
If your mother is in a Nursing Home someone should have Power of Attorney. Just a thought.
Posted: Wed Oct 21, 2009 11:09 pm Post Subject:
Insurance teacher, in a case like this, why does it matter if the inheritence is $100,000 in a savings account transferred via will or $100,000 in a life insurance policy being transferred via beneficiary designation? Unless I'm missing something, this should impact the OP's mother in the identical manner.
Posted: Thu Oct 22, 2009 02:32 am Post Subject:
Insurance teacher, in a case like this, why does it matter if the inheritence is $100,000 in a savings account transferred via will or $100,000 in a life insurance policy being transferred via beneficiary designation? Unless I'm missing something, this should impact the OP's mother in the identical manner.
You're correct...regardless of how mom receives any funds or assets, whether from a will or through the death benefit of a life insurance policy, the assets will still be considered "countable assets" when considering Medicaid eligibility. But if the assets included, say a "reasonable home," Medicaid eligibility won't consider that as a countable asset in most states. In most states, Medicaid will allow the Medicaid recipient ownership of a reasonable home and car.
The reason I asked the OP for clarification was simply to determine where and how the assets were going to be transferred. As well, different states have different rules regarding Medicaid eligibility. Even more are states that have engineered "LTC partnership policies" designed to protect a persons assets in the event Medicaid is needed later in their life to pay for nursing home costs (there's a lot more to this one).
The OP posted a message in my box asking that I respond via email, and I think I may! I know this isn't answering the OPs question. Sorry if there's any confusion!
InsTeacher 8)
Posted: Wed Nov 11, 2009 06:35 am Post Subject:
very well said, InsTeacher.
i think this is not an unusual case, and a few may have similar questions. this should answer a significant part of the question.
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