The answer depends on the life insurance company and state law. The first question is whether the insurance company is requiring the probate of your father-in-law’s estate to disburse the funds. If not, then the Medicaid agency probably has no claim.
On the other hand, if the insurance company is requiring probate, then you’ll have to look to state law. In Massachusetts, for example, the state Medicaid program must receive notice of every probate and may submit a claim. However, estates are permitted to exempt $10,000 from such a claim.
If the insurance company does require probate administration, you should probably check with a local elder law attorney to determine whether it’s worth the trouble to proceed. Find a qualified elder law attorney near you today.
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