I'm the beneficiary of a $50,000 life insurance policy, will it cancel my state medicaid, or my Social Security disabiliy.
Also I live in Oklahoma and need to know if you have to pay any kind of taxes on it, thank you.
3 Attorney Answers
Has the policy holder died? Just being the beneficiary on an active policy doesn't have any impact on you. Generally and almost universally, life insurance payouts are tax free.
Medicaid is a need-based program. You will be disqualified for benefits in any month that you have $1,500.00 or more. You should consult local counsel for options and potential cost of services.
In Oklahoma, the life insurance proceeds constitute "countable assets" and can disqualify you for Medicaid and for certain types of Social Security disability, namely SSI. If you haven't received the proceeds yet, (or even if you have) there might still be time to take some protective action. I recommend you contact a qualified elder law/special needs attorney and obtain professional advice. You may contact our office in Oklahoma City for a free consultation if you prefer. Just call (405) 843-6100