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Question for the Money Doctors

Question submitted on Jun 19, 2014.


My aunt has collected disability amounts since she was seven years old. She is 60 now. She asked us to buy life insurance and name the children as beneficiaries. A letter came from the SSA letting us know that medicaid expenses after 55 must be repaid upon her death. She does not have a spouse. Can a lien be placed on the insurance disbursment? Thank you Eric Zarate


An interesting question. I think she may be referring to you and your siblings. Chances are if your aunt has been disabled since she was a child, that it would be very hard for her to qualify for life insurance.

If she could qualify, it may be very expensive.

Your question revolves around ownership. If your aunt is merely the insured and not the owner, then she does not have an asset to forfeit for Medicaid purposes.  You and your siblings own the asset.  She would merely be an insured.

The important issue is one of planning and to discuss the various options to achieve what is important to the family. In this case there are more questions than answers at this phase of the discussions.

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