Owner of life Insurance policy

[stressd-out]

What is the name of your state? PA

My father passed away while in a nursing home in PA two months ago. After my mother passed away 4 years ago, I became owner of my father's two small life insurance policies. He was placed in the Nursing home 2 1/2 years after I became owner of the policies. His monthly retirement checks went directly to the home, and Dept. of Welfare covered the rest. There is no property, & very little money left in bank accounts, so there is no estate, and no need for probate, if I am understanding the meanings correctly. Please, correct me if I am not.
My question is... I have been forwarded a form from the Welfare office regarding the decedents assets. Are they interested in his life insurance policy, if I own the policy? I used one whole policy to pay for the funeral, headstone, and cemetery plot. I also paid for travel expenses for his sons, and their families to drive from out west to come to the funeral. If I own the policies, are they mine to do with as I please, or are they vulnerable?

 

[BelizeBreeze]

What is the name of your state? PA

My father passed away while in a nursing home in PA two months ago. After my mother passed away 4 years ago, I became owner of my father's two small life insurance policies. He was placed in the Nursing home 2 1/2 years after I became owner of the policies. His monthly retirement checks went directly to the home, and Dept. of Welfare covered the rest. There is no property, & very little money left in bank accounts, so there is no estate, and no need for probate, if I am understanding the meanings correctly. Please, correct me if I am not.
My question is... I have been forwarded a form from the Welfare office regarding the decedents assets. Are they interested in his life insurance policy, if I own the policy? I used one whole policy to pay for the funeral, headstone, and cemetery plot. I also paid for travel expenses for his sons, and their families to drive from out west to come to the funeral. If I own the policies, are they mine to do with as I please, or are they vulnerable?

By "Own the policy" you mean you are the beneficiary correct?

If so, the proceeds go directly to you..they do not become part of the estate.

 

[stressd-out]

Reply...owner of life insurance policy

Thanks for your response Belizebreeze. Yes, I am the beneficiary of the policies. I didn't know if the time frame that it was only for 2 1/2 years before he went into the nursing home would come into play. I guess, i'm just not sure how to fill out the form that they sent to me. By owner of the policy, I meant that as far as insurance lingo goes, they were no longer in his name, other than being the person insured. When we took money out of the policy to buy a car for my dad 3 years ago, I was the one taxed on the dividends.

 

[Betty]

If you are owner & beneficiary of the policies, the proceeds will be paid to you no matter the length of time you were owner/bene. They are not part of his estate & I would not report them as his assets. You also said they were small policies - I don't see a problem is not reporting them.