QUESTION
Are there any exceptions to life insurance not being applicable to probate when direct beneficiaries are named?
Asked on Nov 24th, 2013 on Estate Planning - Pennsylvania
More details to this question:
My mother in law recently passed away, after spending 5 months in a long term care facility. She has a $100k life insurance policy and owned 2 homes, none of which was "spent down" to qualify for govt. funds to pay for her care. Long story short, we owe the LTC facility close to $70k. I know that life insurance payouts to beneficiaries (which were her 2 sons) do not go into probate, but after doing a little research I'm confused as to whether or not this applies when someone is in debt to a medical facility. We're wondering if the LTC facility would take a discounted payment if we use the life insurance funds, rather than wait a year for probate and to sell off her properties to pay the debt. Any help would be greatly appreciated.
1 ANSWER
3 Awards
I would ask the social worker if insurance policies with living beneficiaries are subject to the Medicaid claim. I really dont know the answer to that question but i am sure the people working for the PA DPW do. If the policy is subject to their claim, then they can just have a lien until she passes. You can also call a local elder law attorney.
Answered on Nov 24th, 2013 at 10:48 AM
William R. Pelger, Attorney Munhall, Pennsylvania 412-461-1900