Your state Medicaid agency or an elder law attorney will have all the answers regarding insurance policy proceeds and Medicaid spend down requirements. You can easily locate an attorney in your area to explain your situation.
Medicaid Lookback Periods
Spending down assets and income without incurring lookback penalties can be a bit complicated. One of the strategies an elder law attorney may discuss with you is asset preservation using a trust. This may allow a Medicaid recipient to keep significant money and property for other family members while still maintaining eligibility for long-term health care services.
Each state has different income and asset requirements, but you can learn more about the basics of Medicaid qualification in our article, How to Plan Ahead Before Seeking Nursing Home Care. It covers asset and income limits and health care services at home or in a facility.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.