Q. If I have an insurance plan plan that has no income worth and my son is the beneficiary, when I die and he receives the income, will Medicaid file a lien on that revenue? Would my son have to pay out it?
A. Quite a few households are amazed that Medicaid will go right after cash if it pays for your care before you die.
We’re glad you are scheduling in advance so your son isn’t surprised, too, by Medicaid principles.
New Jersey Medicaid considers proceeds from expression lifestyle insurance coverage insurance policies with no hard cash benefit to belong to the named beneficiaries and are not subject to estate recovery, explained Shirley Whitenack, an estate arranging legal professional with Schenck, Price tag, Smith & King in Florham Park.
But, she reported, proceeds from full daily life insurance policies are subject to estate restoration if they are not liquidated prior to the death of the Medicaid recipient.
The beneficiary designation is crucial, she stated.
“Proceeds from any existence insurance coverage policy are recoverable when the designated beneficiary is the estate of the Medicaid receiver,” she claimed.
E-mail your inquiries to [email protected].
Karin Price Mueller writes the Bamboozled column for NJ Progress Media and is the founder of NJMoneyHelp.com. Comply with NJMoneyHelp on Twitter @NJMoneyHelp. Come across NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com’s weekly e-publication.