Cana statekeep life insurance money to pay Medicaid?

My mother passed away in 2009. Mom left 1/3 to each of her 3 sons of her life insurance. However, OH is keeping the money to see if they can apply it to her Medicaid bill. The 3 of us are named on her insurance and I want OH to either release the funds or cite the law giving them the right to the funds. What can I do?

Asked on July 13, 2010 under Insurance Law, Ohio


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You can write to the insurance company that the policy is with and advise them that there is - and I quote - an ADVERSE CLAIM being made to the funds of the policy number xyz123 whose listed beneficiaries are A, B and C and that because the adverse claim is being made you with that the Insurance Company INTERPLEAD the funds in to Court until such time as a Judge can make a determination as to its proper disbursement.  Ask them to send a letter that they are in fact doing so. If they do not do so then seek legal help from an attorney who can do it as well on your behalf.  Good luck.

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