Transfering Life Ins. Ownership after just arriving at the Nursing home.

by Cory
(Hancock, MI, Houghton Co.)

My Father arrived at the Nursing Home 4 days ago after 3 days of hospitalization. Can he still transfer ownership of the policy, to avoid Medicaid from getting the $5,300.00 cash value in Michigan?

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Sep 12, 2013
How to avoid penalty
by: Gabriel Heiser

A transfer of an insurance policy with a cash value will be treated as a gift, and will cause a period of disqualification from Medicaid benefits for a certain period of time. The higher the cash value, the longer the penalty period. If the amount is around $5,000, the penalty period will be maybe a month or so, depending on the state you are in.

To avoid the penalty, you can withdraw the cash value and spend the money on something that is not counted, such as a prepaid funeral and burial plan or other personal items for your father.

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