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Old 08-28-2017, 11:15 AM   #1
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I really hope someone can help me... I really hope someone can help me...
I will try my best to make a long story short. So you have a little more background I want to mention that about 6 years ago my parents passed away within TWO DAYS of each other (both from health issues for curious minds). My mother had a whole life insurance policy that we never knew about until a year ago when we were told there was unclaimed property. Well, my mother was the first to pass and then my father and because that's the case they will ONLY release the money to us through a probate estate for my father. The problem is, is that Medicaid wants to claim the money being that my father was in a care facility. Does anyone have any information to help me see if there is a possibility I would still be entitled to the money or if there is no other choice but to surrender to Medicaid.

Thanks.
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Old 08-28-2017, 11:58 AM   #2
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I really hope someone can help me... Re: I really hope someone can help me...
Originally Posted by SquishyDolphin View Post
I will try my best to make a long story short. So you have a little more background I want to mention that about 6 years ago my parents passed away within TWO DAYS of each other (both from health issues for curious minds). My mother had a whole life insurance policy that we never knew about until a year ago when we were told there was unclaimed property. Well, my mother was the first to pass and then my father and because that's the case they will ONLY release the money to us through a probate estate for my father. The problem is, is that Medicaid wants to claim the money being that my father was in a care facility. Does anyone have any information to help me see if there is a possibility I would still be entitled to the money or if there is no other choice but to surrender to Medicaid.

Thanks.
We can give you guesses. Educated and otherwise. However, my best advice is to contact an attorney in the state they lived in that handles that kind of law.
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Old 08-28-2017, 11:59 AM   #3
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I really hope someone can help me... Re: I really hope someone can help me...
Were you listed as a contingent beneficiary on the insurance policy?

If not, then your father being listed as beneficiary would be subject to your father's estate (and probate).

If you were listed as contingent beneficiary, then the benefit should go directly to you.


This is not legal advice. You may need to see an attorney in your state for specifics.
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Old 08-28-2017, 12:19 PM   #4
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I really hope someone can help me... Re: I really hope someone can help me...
Originally Posted by DHK View Post
Were you listed as a contingent beneficiary on the insurance policy?

If not, then your father being listed as beneficiary would be subject to your father's estate (and probate).

If you were listed as contingent beneficiary, then the benefit should go directly to you.


This is not legal advice. You may need to see an attorney in your state for specifics.
Sorry, that is completely incorrect. Beneficiary was alive at time of the insured's death, so it goes to the beneficiary or beneficiary's estate. EXCEPT....

See if the policy included a clause that effectively states should the beneficiary die shortly after the insured, then the beneficiary will be considered to have predeceased the insured for purposes of the policy. I do not have a policy or policy specimen handy that includes such language. Typically there are restrictions and it may require the same event to have resulted in both deaths. It is typically intended for things like a car accident where husband and wife both die, but it is unclear who died first or to avoid the benefit having to go through the last to die's estate before going to the child(ren) who were the contingent beneficiaries on both policies.

Barring such a clause that would apply, you are probably SOL. Of course you are always free to consult a lawyer, but don't be surprised if the attorney is unable to get you the money.

It really sucks, it truly does. I went through something similar with my grandmother and mother due to an error by the bank. It involved properly setting the beneficiaries on accounts, which they failed to due. Sadly I had no proof the request had been made.

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Old 08-28-2017, 01:34 PM   #5
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I really hope someone can help me... Re: I really hope someone can help me...
Originally Posted by VolAgent View Post
Sorry, that is completely incorrect. Beneficiary was alive at time of the insured's death, so it goes to the beneficiary or beneficiary's estate. EXCEPT....

See if the policy included a clause that effectively states should the beneficiary die shortly after the insured, then the beneficiary will be considered to have predeceased the insured for purposes of the policy. I do not have a policy or policy specimen handy that includes such language. Typically there are restrictions and it may require the same event to have resulted in both deaths. It is typically intended for things like a car accident where husband and wife both die, but it is unclear who died first or to avoid the benefit having to go through the last to die's estate before going to the child(ren) who were the contingent beneficiaries on both policies.

Barring such a clause that would apply, you are probably SOL. Of course you are always free to consult a lawyer, but don't be surprised if the attorney is unable to get you the money.

It really sucks, it truly does. I went through something similar with my grandmother and mother due to an error by the bank. It involved properly setting the beneficiaries on accounts, which they failed to due. Sadly I had no proof the request had been made.
Bene - that I my understanding also.

Attorney - we also do not know if we are talking $10,000 or $1,000,000.00 zeros tend to modivate attorneys.
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Old 08-28-2017, 01:39 PM   #6
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I really hope someone can help me... Re: I really hope someone can help me...
Originally Posted by WinoBlues View Post
Bene - that I my understanding also.

Attorney - we also do not know if we are talking $10,000 or $1,000,000.00 zeros tend to modivate attorneys.
Yeah, just depends. Although the insurance company is obligated to honor the contract. So the attorney is going to have to find them a loophole or convince Medicaid to not go after the money.

The insurance company is not going to pay twice, so you better believe they are not going to pay the OP until they are satisfied they do not own the beneficiary or in this case his estate.

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Old 08-28-2017, 02:03 PM   #7
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I really hope someone can help me... Re: I really hope someone can help me...
Originally Posted by VolAgent View Post
Yeah, just depends. Although the insurance company is obligated to honor the contract. So the attorney is going to have to find them a loophole or convince Medicaid to not go after the money.

The insurance company is not going to pay twice, so you better believe they are not going to pay the OP until they are satisfied they do not own the beneficiary or in this case his estate.
You bring up good points on primary and contingent beneficiary wording.
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Old 08-28-2017, 02:14 PM   #8
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I really hope someone can help me... Re: I really hope someone can help me... SquishyDolphin is the thread starter for: I really hope someone can help me...

Yeah I am familiar with the clause because my brother and I used it for another insurance company that my mother had, but that money never went to unclaimed property. They are saying that they are going by the contract of the insurance company and that it precedes the state law. I'm pretty sure I am just SOL this time, but wanted to exhaust all possible options before throwing in the towel.
Also just to add- I am listed as a contingent on the original policy.

Thanks everyone for your advice!! ...I'm thinking about contacting an attorney to see if this is all worth it.
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Old 08-28-2017, 02:22 PM   #9
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I really hope someone can help me... Re: I really hope someone can help me...
Originally Posted by SquishyDolphin View Post
Yeah I am familiar with the clause because my brother and I used it for another insurance company that my mother had, but that money never went to unclaimed property. They are saying that they are going by the contract of the insurance company and that it precedes the state law. I'm pretty sure I am just SOL this time, but wanted to exhaust all possible options before throwing in the towel.
Also just to add- I am listed as a contingent on the original policy.

Thanks everyone for your advice!! ...I'm thinking about contacting an attorney to see if this is all worth it.
Please explain the part in bold. They are saying the insurance contract takes precedence over state law? Unless the law in question has a clause or section that allows the contract to override it, state law always trumps a contract.

If it has gone to unclaimed property, then the state has it now and would be handled by them with their procedures.

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Old 08-28-2017, 04:41 PM   #10
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I really hope someone can help me... Re: I really hope someone can help me...
Just as the beneficiary designations trump whatever is in a will...same goes for state law. The insurance company is going to pay according to the contract.
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