If my mother has passed and was on Medicaid and she had a life insurance policy that she owed who is entitled to the money. Beneficiaries or Medicaid

Medicaid cannot take your life insurance policy while you are still alive. However, if your estate is the beneficiary of your life insurance policy and you receive long-term care Medicaid benefits, then Medicaid may take your death benefit proceeds to recover those costs. Thankfully, you can work around that by naming someone other than your estate as the beneficiary of your life insurance policy. What this means to you is as long as your mom named a different beneficiary for her policy and that beneficiary does not disclaim the gift, then the policy should never enter into mom's estate. And that means that Medicaid cannot use it to recover costs.  That being said, you need to be proactive about this issue and contact the Medicaid recovery representative assigned to moms case file and make full disclosure of this life insurance policy.