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My 66yo brother has been disabled from polio since age 4, and now has post polio syndrome. He has lost ability to stand, and left side weakness which is going to right side and is in power chair. He can barely write. He has had Medicare for many years. His only income is my late father's social security, approx $800 a month. I live 3 hours away but provide a home for him (which he shared with my late mother.) I have never charged rent or upkeep costs. A brother now lives there and handles groceries and cooking. With his inevitable worsening health, I applied for Medicaid for his secondary coverage. It was denied due to the only asset he has in this world, a $15,000 life insurance policy that has a small cash value on it. The policy is basically for his funeral costs. He is hesitant to take it out and I don't want to push him. Any suggestions?

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ASK the insurance company if the policy can be converted to a prepaid funeral policy that meets Medicaid standards.

He can't have this asset and receive Medicaid, so he must decide what is more important. If he decides that the 15k is, then you must decide what kind of help you are willing to give.

Personally I would not provide any financial assistance if he decides that the 15k is more important, because he isn't doing everything possible to stay out of your wallet and that is a deal breaker.

After all of these years is he not able to continue as is because of the other brother moving in?

Maybe he needs to help financially for a place to live.
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Marcia732 Nov 2020
I don't think the cash value is $15k. I think that's the policy's face value. But the cash value must be more than $2k if it's disqualifying him.
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If you cash in the life insurance you and he could set up a mortuary(burial) trust for him. That won't count as a Medicaid asset. If the cash value is small, it most likely wouldn't cover the whole cost of the funeral. In our state, mortuary trusts can be set up with a funeral home, and they have to put it in an interest-bearing account. It can be set up so at death the money can be used at any funeral home, not necessarily the one that's holding the trust for the deceased person.
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I found the medicaid case workers very helpful. Try calling the Department of Social Services. There might be some way to convert the cash value life insurance into a policy that would not impact his Medicaid application- like a term life or something.
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