Medicaid, nursing home, and recently found assets

[Fatherhull]

Jurisdiction

Missouri

Mother has dementia and has been in a nursing home for 3 years. Medicaid recently found a life insurance policy in her name and says that she no longer qualifies. The nursing home says that I will have to pay out of my pocket and I'm on disability and unable to pay. If I cash out her policy, what can I do with the money so that she can go back on medicaid and I don't end up in trouble?

 

[army judge]

Mother has dementia and has been in a nursing home for 3 years. Medicaid recently found a life insurance policy in her name and says that she no longer qualifies. The nursing home says that I will have to pay out of my pocket and I'm on disability and unable to pay. If I cash out her policy, what can I do with the money so that she can go back on medicaid and I don't end up in trouble?

If mother is your wife, your options are few other than to divorce her.
If, however, mother is your mother, you're not legally responsible for paying her bills.

As far as the life insurance policy, you might want to talk to a lawyer.
If the state believes you conspired to conceal the existence of the policy, criminal problems might appear. Or, you could be on the hook for a civil remedy.

 

[Betty3]

Mother has dementia and has been in a nursing home for 3 years. Medicaid recently found a life insurance policy in her name and says that she no longer qualifies. The nursing home says that I will have to pay out of my pocket and I'm on disability and unable to pay. If I cash out her policy, what can I do with the money so that she can go back on medicaid and I don't end up in trouble?

Agree that if she is your Mother you are not liable for her bills unless you signed something agreeing you would be.

You don't want to cash out the policy & use the money for something other than paying the nursing home - you might get in trouble here. You might not even be able to cash it out unless you are the owner or if your Mother is the owner, you have some type of legal authority to do so.

Do talk to a lawyer. Good luck.