by Guest » Wed Feb 23, 2011 04:06 pm
I have recently received word that I am the beneficiary of a life insurance policy for a person that just passed away. I live in Illinois and the insured was on medicaid in a nursing home. Do I need to pay Medicaid the proceeds from the policy?
Will they come to me for the money?
Will they come to me for the money?
Posted: Wed Feb 23, 2011 08:45 pm Post Subject:
most likely this is an unsecured debt, which is payable by the estate, however if there are insufficient funds I don't think they can come after you. The proceeds to the life insurance policy are not theirs to claim, nor do they belong to the estate.
Posted: Thu Feb 24, 2011 01:34 am Post Subject:
Any debts owed to medicaid are taking care of by medicaid becoming a creditor to the deceased's estate. Life insurance proceeds pass outside of the estate (providing the proper beneficiary designation exists, this would simply mean that you are named the beneficiary on the policy).
So, providing you are correct and are the named beneficiary, there is no concern with this becoming subject to any claim Medicaid as as a creditor against the estate.
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