LIfe Insurance Ownership
Mom has a 10k life insurance policy and the CSV is $2100.00. Mom is already Medicaid eligible. Ownership to life insurance was transferred to daughter and assigned to a funeral home at the same time to make this not a Medicaid asset of mom. All paperwork incl. the transfer paperwork and irrevocable/preneed funeral contract was submitted to the Caseworker immediately @ Medicaid recertification. Mom was still approved. This was no longer listed as an asset to mom. Caseworker never questioned and surprisingly, I thought they will do to transfer. In State of NJ, there is a funeral exclusion law for Medicaid recipients when spending down assets.
Due to above and if we want to really audit it, will there be a penalty for transfer or gifting imposed later?
What is to worst that can happen after mom passes?