Legal Question in Wills and Trusts in Pennsylvania

For your first question, once the person who is insured dies, nothing can change the policy or beneficiaries. You power of attorney is no longer effective for any purpose whatsoever.

Your mother's estate should be administered.

For the insurance, contact the insurance company to arrange for payment of the proceeds. You or the insurance company may have to set up an escrow or trust account for the share of the missing brother.

For your second question, you need to consult with an elder law attorney. Medicaid planning and what happens to assets after death are governed by specialized laws, and not every lawyer is experienced in that area.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.

Life insurance is a non-probate asset. It is paid to whomever is named in the policy. I would have to see the power of attorney language to see how it is written to see if you had the power to change beneficiaries during your mother's lifetime, but it is moot now that your mother is deceased. The power of attorney ended at death and if the change was not made before her death it cannot be altered after her death. The share of the AWOL brother would have to either be held by the insurance company and then escheated to the state if unclaimed for a certain period or else there is a procedure for creating an estate for a missing person. However, there are missing heir services out there and if your brother is alive, they can usually locate them . With today's technology, it is very difficult to hide if he is working and living any kind of a normal life.

The second question is more problematic. I don't do the Medicaid reimbursement - each state has different Medicaid rules that are complex. I am not sure why the funeral home gave YOU any refund. FGrom what you indicate, the monies should have been refunded to your mother's estate. I don't know if the cost of a gravemarker would be an allowable expense under the Medicaid rules but you need to find out. It may be that any amount over the cost of the gravemarker (again - don't count the separate life insurance policy) will have to be paid back to Medicaid.

You need to contact a probate attorney, not the state of PA, in the county/state where your mother resided at the time of her death (this usually is not the place where the nursing home was located, but where your mother lived before she entered the nursing home). You need to bring all of the paperwork and ask: (1) is probate necessary; (2) how to allocate your missing brother's share of the life insurance; and (3) what assets did your mother own and what has to be paid back? While Medicaid is mandated to seek recovery from the estate assets of the person, there is also a provision indicating that small sums might be waived. I don't know how much Medicaid paid and what she has left to know what Medicaid is entitled to receive.