Legal Question in Wills and Trusts in Tennessee
Stepmom died from Alzheimers after receiving State care for 4-years. The State deferred recovery from her estate until my dad passes. My elderly dad set up a Living Trust and has a life insurance policy. Should he designate the Living Trust as the beneficiary or designate the insurance proceeds directly to his kids and step kids? Not sure how much the State will try to recover but he would like to leave the remainder of his estate to kids and step kids per stirpes. If the children are direct beneficiaries of the insurance proceeds, can the State try to recover from them? Will the insurance proceeds be protected from collection inside the Trust? Need help with this beneficiary designation for asset protection...
1 Answer from Attorneys
The Bureau of Tenncare will seek recovery for your Mom's Medicaid nursing home bills from your Dad's estate. If the life insurance beneficiaries are the children instead of your Dad's estate, the Bureau of Tenncare can still seek recovery from the children. This is a situation that should be discussed in detail with an elder law attorney.
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