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Question
Hello,

I have a mother who is 80 years old and there is a good possibility that she will need some assistance in the near future.  I'm not sure if she will need to go into a nursing home or if we will have someone take care of her at home.

My question is this:  My mother has a life insurance policy with a cash value of approximately $60,000.  Will this policy effect her qualifying for medicade assistance with her long-term care needs?

Thanks.

Answer
Dear Mike,

If she is the owner of the policy, it will impact her eligibility for MedicAid. However, if the policy is owned by a beneficiary, she not being in control of the policy, it would be out of reach of MedicAid rules. In order for this to be true, the ownership of the policy by a beneficiary must have been established more than three to five years (depending on state of occupancy) before the application of MedicAid assistance.

Willard R Brumbaugh, LUTCF
CA License 0374776
www.willardbrumbaugh.com
(888) 792-2379

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Willard R. Brumbaugh, LUTCF, CSFP

Expertise

I can handle questions concerning life insurance, it`s tax implications, how to determine what is appropriate, and how it fits in one`s estate and retirement planning.

Experience

For 2 1/2 years I was an expert on AskMe.com, where for most of that time I was ranked #1. I have been a moderator (instructor) for the Life Underwriters Training Council. I have been licensed since 1969. Organizations I belong to: National Association of Insurance and Financial Advisors - California and the Inland Empire Estate Planning Council. I hold the professional designation of Life Underwriters Training Council Fellow.

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