Go to your local funeral home. Sign an irrevocable trust that the 5000.00 is to be used for burial. Then the cash surrender value will be excluded from your 2000 resource limit. It needs to be signed by the funeral home, be signed within 30 days and include an itemized list.
The insurance policy will need to be cashed out. Medicaid allows for 2K in assets, so mom is over. I'd contact the insurance company to see how it can be done and done efficiently. It may be that "mom" needs to do this as it's her policy…. if you are the DPOA and also the beneficiary as well they may balk at it being cashed out. Some insurance companies have on-line applications for this too.
Then once you get the 5k $, it will need to be spent-down and ASAP. JeannieGibbs suggestion on prepaid funeral is terrific as the funeral home can do whatever needed quickly and easily and provide the paperwork to you for Medicaid compliance. BTW funeral and burial run 8 - 12K so even a 5K spend may not pay for everything…. Whatever you do kinda need to do is get all the $ below 2K so that she clearly ends a month as per her banking statement to be under 2K in assets. This way she can be back eligible for Medicaid.
Sometimes families spend-down on hearing aids, extra pairs of eyeglasses, additional clothing more suitable for a NH laundry situation, dental work. It just need to be $ spent for them and their needs. Good luck and try to get on this asap so that she starts the new year Medicaid eligible.
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Then once you get the 5k $, it will need to be spent-down and ASAP. JeannieGibbs suggestion on prepaid funeral is terrific as the funeral home can do whatever needed quickly and easily and provide the paperwork to you for Medicaid compliance. BTW funeral and burial run 8 - 12K so even a 5K spend may not pay for everything…. Whatever you do kinda need to do is get all the $ below 2K so that she clearly ends a month as per her banking statement to be under 2K in assets. This way she can be back eligible for Medicaid.
Sometimes families spend-down on hearing aids, extra pairs of eyeglasses, additional clothing more suitable for a NH laundry situation, dental work. It just need to be $ spent for them and their needs. Good luck and try to get on this asap so that she starts the new year Medicaid eligible.
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