I have a whole life insurance policy that is pushing me just over the $4K in assets for Medicaid. Online I see I have 3 options: cash it out, take a loan to bring me under, or transfer to a funeral home to pay my burial expenses. But the business office at the nursing home said cash out/loan goes to them as part of the spend down. I get that. But when I asked about transferring it to my funeral home of choice, they said I couldn't. When I pressed them they said it was because I would have had to have done so before I needed Medicaid. I don't see anything online that says that.
Online says once you transfer to funeral home it is in THEIR name and no longer an asset in YOUR name. I would prefer to do this so my burial gets paid for and not go to the nursing home. I like them but this questioned my trust. Wondering if there's an experienced elder care attorney who can help me with this. THANK YOU
The nursing home is giving you bad information.
Medicaid is looking for non-compensated transfers (gifts.) I exchange for your money or policy, the funeral home is providing you with services, which is not a gift.
Of course they would say you couldn't. They want the money. I suggest you contact the social worker with the state who is assisting you in your medicaid status and ask them this question. They are the "boots on the ground" who can give you a fully informed answer to your question.
Legal disclaimer: This answer does not constitute legal advice. I am admitted to practice law in the State of Missouri only, and make no attempt to opine on matters of law that are not relevant to Missouri. This answer is based on general principles of law that may or may not relate to your specific situation, and is for promotional purposes only. You should never rely on this answer alone and nothing in these communications creates an attorney-client relationship. less
Using the policy to pay for the funeral expenses is a pretty routine way to "spend down"... Go forth and do likewise!
This is not legal advice. I am not your lawyer. You are not my client. You cannot rely on my response to your question. My response to your question is probably worth exactly what you paid for it. You don't get to sue me for anything. If you'd like to sue me, well you have to hire me first.
Has the Medicaid application already been submitted? If so, she is currently not qualified for benefits if her assets are over the threshold. Any transfer needs to be for healthcare. If she has not applied yet, you can pay for the pre-paid funeral burial and then qualify after that transfer - it will not be considered a gratuitous transfer and will be for a non-countable asset so you should be fine. Maybe the application has not been submitted but they are concerned about protecting their income - to make sure she qualifies because the application can be approved for retroactive benefits for 3 months if she otherwise qualified and she will if she only spends for healthcare.
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