Can I Transfer Mom's Life Insurance to Help Her Qualify for Medicaid?

The general rule is no, applicants for Medicaid may not transfer assets during the five years prior to application without triggering a waiting period for benefits. You may, however, withdraw the cash value in excess of $1,500 and spend it down, perhaps prepaying for your mother’s funeral if you haven’t done that already. Unfortunately, practices vary from state to state, so to be certain of your options you need to consult with the Medicaid agency or a local elder law attorney.

For more on Medicaid's asset transfer rules, click here

For more on how to spend down excess assets in order to qualify for Medicaid, click here.